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Introduction
The debt collection policy of the bank is built around dignity and
respect to customers. Bank will not follow policies that are undue
coercive in collection of dues. The policy is built on courtesy, fair
treatment and persuasion. The bank believes in following fair practices
with regards to collection of dues and repossession of security and
thereby fostering customer confidence and long-term relationship.
The repayment schedule for any loan sanctioned by the bank will be fixed
taking into account 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 Installments (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.
Bank's Security Repossession Policy aims at recovery of dues in the
events of default and is not aimed at whimsical deprivation of the
property. The policy recognizes fairness and transparency in
repossession, valuation and realization of security. All the practices
adopted by the bank for follow-up and recovery of dues and repossession
of security will be in consonance with the law.
General Guidelines
All the members of the staff or any person authorized to represent the
bank in collection or / and security repossession would follow the
guidelines set out below:
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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.
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dentity and authority of persons authorized to
represent bank for follow-up and recovery of dues would be made
known to the borrowers at the first instance. The bank's 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.
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The bank would respect privacy of the borrowers.
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The bank is committed to ensure that all written
and verbal communication with its borrowers will be in simple
business language and bank will adopt civil manner for interaction
with borrowers.
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Normally the bank's representative will contact
the borrower between 0700 hrs and 1900 hrs, unless the special
circumstance of his/her business or occupation requires the bank to
contact at a different time. Such contact should be made over
phone/mobile/fax/email or in person.
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Borrower's request to avoid calls at a particular
time or at a particular place would be honored as far as possible.
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The bank will document the efforts made for the
recovery of dues and the copies of communication sent to the
customers if any, will be kept on record.
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All assistance will be given to resolve disputes
or differences regarding dues in a mutually acceptable and in an
orderly manner.
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Inappropriate occasion such as bereavement in the
family or such other calamitous occasions will be avoided for making
calls /visits to collect dues.
Giving notice to borrowers
While written communication, telephonic reminders,
communication over mobile, fax, e-mail or visits by the bank's
representatives to the borrowers' place of choice 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.
Repossession of Security
Repossession of security is aimed at recovery of dues
and not to deprive the borrower 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.
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 right to recover from the borrower the
balance due if any, including the expenses incurred in repossessing the
property and ensuring its safety and security, before 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.
Opportunity for the borrower to take back the
security
The bank will resort to repossession of security only
for the purpose of realization of its dues and not with intention of
depriving the borrower 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's dues are cleared in full. If satisfied
with the genuineness of the borrower's inability to pay the loan
installments as per the schedule which resulted in the repossession of
security, the bank may consider handing over the property after
receiving the installments 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 installments in future. In case the
borrower again defaults in making repayment the bank will not hand over
the possession.
The policy guidelines on Collection of Dues and
Repossession of Security as enumerated above are part of Bank's Recovery
Management Policy and is made available on Bank's website for the
convenience of customers. |
