Delivering a strong jolt to the Mahindra Finance — the financial services arm of Mahindra and Mahindra group — the Reserve Bank of India has asked it to stop taking third party services for the recovery its loans. The Central bank has also said that this order should be followed till further order.
However, Mahindra and Mahindra Company can continue to provide loan recovery services. But the loan recovery has to be done with own employees. Loan recovery should not involve outsourcing. On September 16 in Hazaribagh, Jharkhand, a 27-year-old pregnant woman was reported to have died after falling under the wheels of a tractor being seized by a recovery agent of a finance company.
Later it is known that the finance company is Mahindra and Mahindra Finance. The agents of Mahindra Finance tried to seize the tractor after Mahindra Finance had given a loan for the tractor and the money was not repaid. The pregnant woman died after falling under the tractor. RBI has now taken a key decision in this order.
But we are constantly seeing that many people are suffering from loan recovery agents. Recently, Union Finance Minister Nirmala Sitharaman also revealed an important point about loan apps. Illegal loan apps are no longer available on Google Play Store. RBI is preparing a white list in this regard. Only these loan apps are available on Google Play Store.
It is also known that RBI has recently announced new rules regarding loan recovery. If these are violated, RBI will crack down on NBFCs or other financial institutions. Many people have already died due to harassment by loan apps. That is why the Reserve Bank of India and the Central Government are trying to solve this problem. New rules are being brought. Using available options. However, the harassment of loan apps and loan recovery agents does not stop completely.