In compliance of the guidelines of the Reserve Bank of India (RBI), the Chhattisgarh Government has directed the all District Collectors and Superintendent of Police to initiate stern action against the loan recovery agents of banks and finance companies adopting unlawful methods for recovery of dues. A circular has been issued by the Chief Secretary Vivek Dhand to all Collector and SPs in this regard, officials informed on Saturday.
The Chief Secretary in the circular mentioned that the Supreme Court in different cases has observed that some banks or finance companies take help of anti-social elements and adopt illegal methods for recovery of dues. The recovery agents seize vehicles unlawfully while they have been authorized to recover the dues only through legal provisions. The RBI in its directives has specially mentioned that banks should inform the borrowers about its recovery agency and their agents in writing.
The Authority empowering them and their contact details along with identity cards and direction to appear before the borrower should be separately mentioned. The contract letter should also clearly mention about property mortgaged against the loan and information about loan taken. Dhand further mentioned that it has been seen that some banks and finance companies do not follow the guidelines issued by the RBI and the Supreme Court. If complaint of forced recovery is obtained, then RBI can ban working of the concerned bank or the recovery agent in that particular area.