The Reserve Bank of India today placed on its website (www.rbi.org.in) draft guidelines for banks engaging recovery agents. The Reserve Bank has invited views/comments on the draft guidelines within a period of one month. Views and comments may be sent to :

Chief General Manager-in-Charge
Department of Banking Operations & Development
Reserve Bank of India
Central Office Building, 12th Floor
Shahid Bhagat Singh Road
Mumbai-400001

Views/comments can also be faxed to :22705691 or e-mailed.

The number of litigation of banks engaging recovery agents was on the rise in the recent past. It was felt that adverse publicity might result in serious reputation risk not only for the bank concerned but also for the banking sector as a whole. An urgent need was, therefore, arisen to review the policy, practice and procedure involved in engagement of recovery agents by banks in India. Reserve Bank has, in this background, proposed to issue operational guidelines for adoption by all commercial banks. The issue of extending similar guidelines to NBFCs, as appropriate, is being considered separately.

Alpana Killawala
Chief General Manager