RBI fines Bajaj Finance for violating restoration practices
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The Reserve Bank has imposed a penalty of Rs 2.5 crore on Bajaj Finance for violation of code of conduct in outsourcing of economic companies and truthful practices code pertaining to assortment strategies by restoration brokers.
The motion 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 stick to the instructions issued by the RBI, the central financial institution stated.
“There were also persistent and repeat complaints about recovery and collection methods adopted by the company,” it stated. A discover was issued to the agency advising it to point out trigger as to why effective shouldn’t be imposed.
