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Updated on - 27th Feb'24

and long-term relationship. The policy is brought to effect or enforced from the day account

becomes delinquent (Days Past Due - DPD1). The bank and its representatives are expected

to always follow the Code of Conduct during their interaction with the customers.

The repayment – dates for any credit card / loan including cash credit or overdraft sanctioned

by the bank is fixed considering the paying capacity and cash flow pattern of the borrower,

The method of collection of repayment (say post-dated cheque, Standing Instruction, ECS,

ACH etc.) is fixed taking into consideration the convenience of the borrower. The bank would

expect the customer to adhere to the repayment schedule/dates agreed to and approach the

bank for assistance and guidance in case of genuine difficulty in meeting repayment

obligations.

have failed. In exception situations, the Bank has the right to repossess the financed asset,

as a preventive measure, even in instances where there has been no default but on account

of misstatement of information by the customer that is in violation to the terms and conditions

of the loan agreement.

2. General Guidelines:

All the members of the staff or any person authorized to represent our bank in collection

or/and security repossession would follow the guidelines set out below:

1. The customer would be contacted ordinarily at the place of his/her choice and in the

absence of any specified place, at the place of his/her residence and if unavailable at

his/her residence, at the place of business/occupation. During visits to customer’s place

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in collection of dues or/and security repossession will identity himself / herself and

display the authorisation from the bank upon request. The ID card issued to the bank’s

authorized representative has a QR code which can be scanned by the customer to

authenticate the same.

3. The bank would respect privacy of its borrowers. It shall however be noted that contacting

the borrower on phone or personal visits for recovery of dues (in line with this model

policy) will not be construed as an intrusion of the privacy of the borrower.

4. The Bank shall strictly ensure that they or their agents do not resort to intimidation or

harassment of any kind, either verbal or physical, against any person in their debt

collection efforts, including acts intended to humiliate publicly or intrude upon the privacy

6. The bank’s representatives will contact the Micro Finance Institutions borrower between

0900 hrs and 1800 hrs and between 0800 hrs and 1900 hrs for all other borrowers, unless

under special circumstances wherein the customer’s business or occupation requires the

bank to contact at a different time, post due consent from his/her side.

7. Borrower’s requests to avoid calls at a particular time or at a particular place would be

honoured as far as possible.

8. The bank will document the efforts made for the recovery of dues and gist of interactions

with the borrowers. All telephonic interaction with the borrower is recorded.

9. Inappropriate occasions such as bereavement in the family or such other calamitous

occasions will be avoided for making calls/visits to collect dues.

them to repay their overdues in a quick and easy manner. These modes are shared

periodically with the customers during our communication campaigns with the customers.

3. Grievance Redressal and Credit counselling

The bank believes in handling customer issues with adequate empathy and sympathy, with

special emphasis towards senior citizens and customers under stress, and engages in

discussion, when in receipt of any such concerns raised, to amicably redress the same.

For customers under stress, the bank has a process of credit counselling customers who

express the desire to avail the same. The purpose of such counselling is to look at the

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lodge their requests and grievances. The Bank aims to ensure quick and effective handling

of such customer requests and grievance, as well as prompt corrective & preventive action

(including correction of the process, wherever required) in order to avoid recurrence.

All assistance will be given to resolve disputes or differences regarding dues in a mutually

acceptable and in an orderly manner. The bank’s Grievance Redressal policy is available on

the website which can be referred to for further details.

would be given for enabling discharge of dues.

While telephonic reminders or visits by the bank’s representatives to the borrower’s place or

residence will be used as loan follow up measure, the bank will not initiate any legal or other

recovery measures including repossession of the security without giving due notice in writing.

The minimum time that would be given to the borrower to pay the debt would be 7 (seven)

days failing which the bank may proceed to take possession of the asset. However, if the

customer deliberately avoids acknowledging or establishing contact with the Bank, then the

Bank will be free to proceed with the repossession of the security post the expiry of notice

period.

5. Repossession of Security:

safety and security of the property after taking custody.

6. Valuation and Sale of Property:

Valuation and sale of property (The word “property” herein this paragraph shall mean

“immovable property” only) repossessed by the bank will be carried out as per law and in a

fair and transparent manner. In case of loans against property, the sale of the property shall

be conducted in such manner as may deem fit by the bank in accordance with the provisions

of the SARFAESI Act / DRT Act or any other law as applicable. The property shall be valued

by the registered valuers as per extant provision prescribed under SARFAESI Act /DRT Act

and where sale of property is envisaged through auction or tender, same will be published in

other claim against the said borrower. In the case of hypothecated assets, other than

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property, post repossession, the bank shall have right to conduct an independent valuation of

the said asset and would sell the same (after giving minimum 7-days’ notice to the

borrower(s)). The borrower shall be liable to pay to the bank any loss suffered on account of

such sale and in case, there is an excess amount which is realized after the sale of the asset,

the bank shall, in reasonable time, refund it to the customer provided the borrower does not

owe any other liability to the bank.

only for the purpose of realization of its dues as a last resort and not with intention of depriving

the borrower of the property/asset. Accordingly, the bank will be willing to consider handing

over possession of property/asset to the borrower any time after repossession and before

concluding sale transaction, provided the bank dues are cleared in full. If satisfied with the

genuineness of borrower’s inability to pay the loan instalments as per the schedule, which

resulted in the repossession of security, the bank may consider handing over the

property/asset within 7 (Seven) days after receiving the dues in arrears. However, this would

be subject to the bank being convinced of the arrangements made by the borrower to ensure

timely repayment of remaining instalments in future.

8. Engagement of recovery agent: