RBI restrains Mahindra Finance from using recovery agents after accident
IANS 23 September 2022
The Reserve Bank of India (RBI) on Thursday directed Mahindra & Mahindra Services Ltd, Mumbai (MMFSL), to immediately cease carrying out any recovery or repossession activity through outsourcing arrangements, till further orders.
In other words, the company was directed not to use services of any outside agency for loan recovery purpose.
The RBI, however, said that MMFSL may continue to carry out recovery or repossession activities through its own employees.
"The RBI in exercise of its powers under section 45L(1)(b) of the Reserve Bank of India Act, 1934, has directed Mahindra & Mahindra Financial Services Ltd. (MMFSL), Mumbai, to immediately cease carrying out any recovery or repossession activity through outsourcing arrangements, till further orders. However, the said NBFC may continue to carry out recovery or repossession activities, through its own employees," it said.
"This action is based on certain material supervisory concerns observed in the said NBFC, with regard to the management of its outsourcing activities," it said further.
The direction from the central bank came after a pregnant woman in Jharkhand died after she was allegedly mowed down under the wheels of a tractor by a recovery agent of the finance company in the state's Hazaribagh district, according to media reports.
As per reports, Hazaribagh police told media persons that the officials of the finance company did not inform the local police station before going to the residence of the victim for the recovery of the tractor.
Mahindra Group, in a statement quoting its Managing Director and CEO Anish Shah, said that it will investigate the incident from all aspects.
It further said that the company will also examine the practise of using third-party collection agencies.
The company said that it stands with the deceased person's family in this moment of grief.
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
4 days ago
Mr Anand Mahinra is good at tweeing on all things under the sun. Now his recovery agents have committed murder. And yet, nothing beyond a word of regret from his company. Will Mahindra financially compensate for the so-called accident? It is their durty to do so.
Indian Overseas Bank Takes a U-Turn. Hides Names of Big Defaulters It Shared 2 Years Ago under RTI
Yogesh Sapkale, 24 September 2022
Following the footsteps of State Bank of India (SBI) and Bank of Maharashtra, another public sector lender, Indian Overseas Bank (IOB), has decided to keep hidden this year the names of big defaulters who have borrowed Rs100 crore...
RBI Cancels Laxmi Co-operative Bank's Licence
Moneylife Digital Team 23 September 2022
The Reserve Bank of India (RBI) on 22nd September announced that it has cancelled Solapur-based The Laxmi Co-operative Bank Limited, citing the lender lacks adequate capital and earning prospects.
The Bank ceases to carry...
Yes Bank: Rana Kapoor, Gautam Thapar Charge-sheeted by CBI in Rs466.51 Crore Fraud Case
IANS 20 September 2022
The Central Bureau of Investigation (CBI) on Monday filed a charge-sheet against Rana Kapoor, the then managing director (MD) and chief executive officer (CEO), Yes Bank Ltd, and Gautam Thapar, chairman, Avantha group and Oyster...
Delhi HC Allows Tatas' Appeal against Crypto-currency 'TATA Coin'
IANS 20 September 2022
The Delhi High Court on Monday allowed an appeal by Tata Sons Private Ltd to grant an ad-interim injunction against Hakunamatata Tata Founders and others using the former's trademark for doing online trading in crypto-currency 'TATA...
Free Helpline
Legal Credit