Date:26/03/2008 URL: http://www.thehindubusinessline.com/2008/03/26/stories/2008032651870600.htm

Back RBI issues revised draft guidelines for recovery agents

Our Bureau

Mumbai, March 25 Banks may have to make a provision for recording the calls made by recovery agents to customers and vice versa, according to the second draft guidelines on recovery agents issued by the RBI here on Tuesday.

Banks may also have to place an updated list of recovery agents on their Web site and conduct periodical verification of the antecedents of employees of recovery agents, which may include verification through police.

While the revised guidelines may allow banks to continue recovery proceedings if the borrower continuously makes ‘frivolous or vexatious’ complaints, they can also utilise the services of a credit counsellor if the case of a particular borrower deserves sympathetic consideration, said the draft guidelines.

Banks may be permitted to tie up with the Indian Institute of Banking and Finance (IIBF) and other training colleges so that every recovery agent passes the examination conducted by IIBF in a year.

Earlier, the RBI had suggested special training and certification for recovery agents.