1. Objective
This policy governs the process of loan recovery in a fair, transparent, and legally compliant manner, protecting the dignity of borrowers while safeguarding the Company's assets.
2. Recovery Principles
- Recovery executives shall identify themselves with an authorisation letter before visiting a borrower.
- Recovery calls shall be made only between 08:00 and 19:00 hrs.
- Abusive language, harassment, or intimidation is strictly prohibited.
- Third-party recovery agents are bound by the same standards through contractual clauses.
3. NPA Classification
Loan assets are classified as Non-Performing Assets (NPA) in accordance with RBI Master Directions — overdue more than 90 days for credit-impaired assets.
4. Settlement
One-time settlement (OTS) proposals may be considered for NPA accounts on a case-by-case basis, subject to Board/Committee approval, after taking into account the borrower's financial position, value of security, and cost of recovery.
5. Legal Action
Legal action (SARFAESI, civil suits, arbitration) will be initiated as a last resort after exhausting all other recovery measures.
6. Borrower Grievances on Recovery
Borrowers who experience unfair treatment during recovery may complain to the Grievance Redressal Officer. Substantiated complaints will result in disciplinary action against the concerned personnel or agent.