As published in the newspapers, the RBI has issued certain guidelines to be followed by the Recovery Agents appointed by the banks. In addition to this, the India Bank Association (IBA) has to formulate a special training course for them. Why do RBI and IBA have to come into picture for such an issue which is the responsibility of the banks? [OBC 2008]begin{enumerate}item RBI and Govt were getting many complaints from the public about the misbehaviour of Recovery Agents.item Govt of India is paying much emphasis on providing banking services to the poor section of the society. News about ill-treatment by agents or suicides due to inability to pay back loans create a negative picture. RBI does not want this to happen.item Despite banks efforts to recover loans many people still do not wish to repay their loans, intentionally. Recovery agents will help banks to get their money back by all possible means.end{enumerate}

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

As published in the newspapers, the RBI has issued certain guidelines to be followed by the Recovery Agents appointed by the banks. In addition to this, the India Bank Association (IBA) has to formulate a special training course for them. Why do RBI and IBA have to come into picture for such an issue which is the responsibility of the banks? [OBC 2008]

A	Only 1
B	Only 2
C	Both 1 & 2
D	Only 3

Explanation:

Detailed explanation-1: -Recovery agents are barred from acts intended to humiliate publicly or intrude upon the privacy of the debtors’ family members, referees and friends. The RBI has also warned banks against recovery agents making misleading representations.

Detailed explanation-2: -The RBI’s recent circular states that recovery agents employed by regulated entities should not call borrowers before 8:00 am and after 7:00 pm for the recovery of overdue loans. Borrowers can take legal action against the collection agency for misbehaving or violation of their privacy.

Detailed explanation-3: -Reserve Bank of India is authorized to issue directives to banks under Section 21 of Banking Regulation Act, 1949 in the interest of depositors, members of public or banking policy.

There is 1 question to complete.