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LOAN LAW: RBI threatens to ban banks in case of violation of the rules on loan recovery.

LOAN LAW: RBI threatens to ban banks in case of violation of the rules on loan recovery.

Behave with loan clients or face ban, RBI to banks

The Reserve Bank of India on Friday barred banks from resorting to any verbal or physical harassment of customers through agents in case of loan defaults and warned that the Central banking authority may consider ban on banks in case of any violation of the rules. Issuing a set of draft guidelines for banks on the use of recovery agents, the RBI said banks will have to inform borrowers the details of agents being used to pursue any default cases.

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