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Friday, January 15, 2021

RBI fines Bajaj Finance for violating recovery practices

The action was taken for its failure to “ensure that its recovery agents did not resort to harassment or intimidation of customers as part of its debt collection efforts” and thereby failing to adhere to the directions issued by the RBI, the central bank said.

By: Express News Service | New Delhi | Updated: January 6, 2021 5:28:52 am
The action was taken for its failure to “ensure that its recovery agents did not resort to harassment or intimidation of customers as part of its debt collection efforts” and thereby failing to adhere to the directions issued by the RBI, the central bank said.

The Reserve Bank has imposed a penalty of Rs 2.5 crore on Bajaj Finance for violation of code of conduct in outsourcing of financial services and fair practices code pertaining to collection methods by recovery agents.

The action was taken for its failure to “ensure that its recovery agents did not resort to harassment or intimidation of customers as part of its debt collection efforts” and thereby failing to adhere to the directions issued by the RBI, the central bank said.

“There were also persistent and repeat complaints about recovery and collection methods adopted by the company,” it said. A notice was issued to the firm advising it to show cause as to why fine should not be imposed.

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