Bajaj Finance fined for harassing borrowers – Times of India
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MUMBAI: The Reserve Bank of India (RBI) has fined Bajaj Finance Rs 2.5 crore for harassment and intimidation of customers by recovery agents during debt collection. The penalty comes at a time when law enforcement authorities are cracking down on app-based lenders for harassing borrowers, which had led to suicide in a couple of cases.
Bajaj Finance is the largest NBFC in the consumer finance segment and has been categorised as systemically important. The RBI had also issued a direction to the company to ensure compliance with its fair practices code — which bars strong-arm tactics by recovery agents — in letter and spirit.
The banking regulator said that there were also repeat complaints about recovery and collection methods adopted by Bajaj Finance.
Bajaj Finance is the largest NBFC in the consumer finance segment and has been categorised as systemically important. The RBI had also issued a direction to the company to ensure compliance with its fair practices code — which bars strong-arm tactics by recovery agents — in letter and spirit.
The banking regulator said that there were also repeat complaints about recovery and collection methods adopted by Bajaj Finance.
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