 |
 |
 |
 |
 |
 |
 |
 |
 |
|||||||||||||||||||
|
|||||||||||||||||||
|
|||||||||||||||||||
|
|||||||||||||||||||
|
|||||||||||||||||||
 |
||||||||
 |
 |
|||||||
|
|
1.
INTRODUCTION : a)
The debt collection policy of the Bank is built around dignity and respect to
customers. The policy is built on transparency, fair treatment and
persuasion. The Bank believes in the following fair practices with regard
to collection of dues and repossession of security and thereby fostering
customer confidence and long term relationship. b)
The repayment schedule for any loan sanctioned by the Bank will be fixed taking
into account the paying capacity and cash flow pattern of the borrower.
The Bank will explain to the customer upfront the method of calculation of
interest and how the equated monthly instalments (EMI) or payments through any
other mode of repayment will be appropriated against interest and principal due
from the customers. The Bank would expect the customers to adhere to the
repayment schedule agreed to and approach the Bank for assistance and guidance
in case of genuine difficulty in meeting repayment obligations. c) Bank’s Security Repossession Policy aims at recovery of dues in the event of default and is not aimed at arbitrary deprivation of the property. The policy recognises fairness and transparency in repossession, valuation and realisation of security. All the practices adopted by the Bank for follow up and recovery of dues and repossession of security shall be in conformance with the law. 2.
GENERAL GUIDELINES: All
the members of the staff or any person authorised to represent the Bank in
collection or/and Security repossession shall follow the guidelines set out
below: : i)
The customer would be contacted ordinarily at the place of his/her choice and in
the absence of any specified place, at the place of his/her residence and if
unavailable at his/her residence, at the place of business/occupation ; ii)
Identity and authority of persons authorized to represent the Bank for follow up
and recovery of dues would be made known to the borrowers at the first instance.
The Bank staff or any person authorized to represent the Bank in collection of
dues or/ and security repossession will identify himself / herself and display
the authority letter issued by the bank upon request ; iii)
The Bank would respect privacy of its borrowers ; iv)
The Bank is committed to ensure that all written and verbal communication with
its borrowers are in simple business language and the Bank will adopt civil
manners for interaction with borrowers ; v)
Normally the Bank’s representatives will contact the borrower between 0700 hrs
and 2100 hrs, unless the special circumstance of his/her business or occupation
requires the Bank to contact the borrower at a different time ; vi)
Borrower’s requests to avoid calls at a particular time or at a particular
place would be honoured as far as possible ; vii)
The Bank will document the efforts made for the recovery of dues and the copies
of communication sent to customers, if any, will be kept on record ; viii)
All assistance will be given to resolve disputes or differences regarding dues
in a mutually acceptable and in an orderly manner ; ix)
Inappropriate occasions such as bereavement in the family or such other
calamitous occasions will be avoided for making calls/visits to collect dues. 3.
GIVING NOTICE TO BORROWERS AND GUARANTORS While
written communications, telephonic reminders or visits by the Bank’s
representatives to the borrowers place or residence will be used as loan follow
up measures, the Bank will not initiate any legal or other recovery measures
including repossession of the security without giving due notice in writing.
Bank will follow all such procedures as required under law for recovery/
repossession of security. 4.
REPOSSESSION OF SECURITY : Repossession of security is aimed at recovery of dues and not with the intention of depriving the borrower/guarantor of the property. The recovery process through repossession of security will involve repossession, valuation of security and realization of security through appropriate means. All these would be carried out in a fair and transparent manner. Repossession will be done only after issuing the notice as detailed above. Due process of law will be followed while taking repossession of the property. The Bank will take all reasonable care for ensuring the safety and security of the property after taking custody, in the ordinary course of the business. 5.
VALUATION AND SALE OF PROPERTY : Valuation
and sale of property repossessed by the Bank will be carried out as per law and
in a fair and transparent manner. The Bank will have the right to recover from
the borrower the balance due if any, after sale of property. Excess amount
if any, obtained on sale of property will be returned to the borrower after
meeting all the related expenses, provided the Bank is not having any other
claims against the customer. 6.
OPPORTUNITY FOR THE BORROWER TO TAKE BACK THE SECURITY As
indicated earlier in the policy document, the Bank will resort to repossession
of security only for the purpose of realization of its dues and not with
any intention of depriving the borrower/guarantor of the property.
Accordingly the Bank will be willing to consider handing over possession of
property to the borrower any time after repossession and before concluding sale
transaction of the property, provided the Bank dues are cleared in full. If
satisfied with the genuineness of borrower’s inability to pay the loan
instalments as per the schedule, which resulted in the repossession of security,
the Bank may consider handing over the property after receiving the instalments/dues
in arrears. However, this would be subject to the Bank being convinced of the
arrangements made by the borrower to ensure timely repayment of remaining
instalments in future. 7.
GRIEVENCES REDRESSAL FORUM: 7.1
The Bank shall have a Grievances Redressal Committee to resolve disputes arising
out of violation of this code. The Grievances Redressal Committee shall
consist of the following members:
i. Controller of the Branch
- Chairman
iii. Chief Manager (GB/AS)
- Member
iii. Law Officer of the Module
- Member
iv. Recovery Officer/Dy. Manager (Rec)
- Convener The
quorum of the Committee shall be three. The grievances should be resolved within
90 days of the date of receipt of application and where personal hearing is
sought, the same may be granted. 7.2
The grievance should be an application/letter signed by the aggrieved person
furnishing inter alia the following: a)
Name, address, telephone / Fax.No., E.Mail I.D. as the case may be, of the
aggrieved person ; b)
Nature of grievance ; c)
Relief sought. |
| Customer Rights | Forms | Government Business | Tenders | Sports | Links | Customer Support |