on Collection of Dues and Repossession of Security
debt collection policy of the bank is built around dignity and respect to
customers. Bank will not follow policies that are unduly coercive in collection
of dues. The policy is built on courtesy, fair treatment and persuasion. The
bank believes in following fair practices with regard to collection of dues and
repossession of security and thereby fostering customer confidence and
repayment schedule for any loan sanctioned by the bank will be fixed taking
into account paying capacity and cash flow pattern of the borrower. The bank
will explain to the customer upfront the method of calculation of interest and
how the Equated Monthly Installments (EMI) or payments through any other mode
of repayment will be appropriated against interest and principal due from the
customers. The bank would expect the customers to adhere to the repayment
schedule agreed to and approach the bank for assistance and guidance in case of
genuine difficulty in meeting repayment obligations.
Security Repossession Policy aims at recovery of dues in the event of default
and is not aimed at whimsical deprivation of the property. The security
repossession procedure would be set in motion only after all attempts by the
Bank to discuss with the borrower the ways and means to overcome the financial
hurdles have failed. The policy recognizes fairness and transparency in
repossession, valuation and realization of security. All the practices adopted
by the bank for follow up and recovery of dues and repossession of security will
be inconsonance with the law.
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
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.
Identity and authority of
persons authorized to represent bank for follow up and recovery of dues would
be made known to the borrowers at the first instance. The bank staff or any
person authorized to represent the bank in collection of dues or/and security
repossession will identify himself / herself and display the authority letter
issued by the bank upon request.
The bank would respect privacy
of its borrowers.
The bank is committed to ensure
that all written and verbal communication with its borrowers will be in simple
business language and bank will adopt civil manners for interaction with
Normally the bank’s
representatives will contact the borrower between 0700 hrs and 1900 hrs, unless
the special circumstance of his/her business or occupation requires the bank to
contact at a different time.
Borrower’s requests to avoid
calls at a particular time or at a particular place would be honored as far as
The bank will document the
efforts made for the recovery of dues and the copies of communication sent to
customers, if any, will be kept on record.
All assistance will be given to
resolve disputes or differences regarding dues in a mutually acceptable and in
an orderly manner.
Inappropriate occasions such as
bereavement in the family or such other calamitous occasions will be avoided
for making calls/visits to collect dues.
3. Giving notice to
written communications, telephonic reminders or visits by the bank’s
representatives to the borrowers place or residence will be used as loan follow
up measures, the bank will not initiate any legal or other recovery measures
including repossession of the security without giving due notice in writing
giving not less than 15 days time to close/regularise
the account. Only on failure of the borrower, the action for
recovery/repossession of security initiated by following all such procedures as
required under law.
4. Repossession of Security:
of security is aimed at recovery of dues and not to deprive the borrower of the
property. The recovery process through repossession of security will involve
repossession, valuation of security and realization of security through
appropriate means. All these would be carried out in a fair and transparent
manner. Repossession will be done only after issuing the notice as detailed
above. Due process of law will be followed while taking repossession of the
property. The bank will take all reasonable care for ensuring the safety and
security of the property after taking custody, in the ordinary course of the
5. Valuation and Sale of Property:
and sale of property repossessed by the bank will be carried out as per law and
in a fair and transparent manner. Regd.
Notice with acknowledgement due will be sent to the borrower/s and
guarantor/s informing the repossession of security, demanding closure of the
account within a specified period failing which, the repossession assets will
be disposed off by public auction or private sale. In case of Public auction,
the notice will be sent to the borrower/s and guarantor/s and also published in
the local newspaper, giving details of the time, place and particulars of the
assets to be sold. The bank will have right to recover from the borrower
the balance due if any, after sale of property. Excess amount if any, obtained
on sale of property will be returned to the borrower after meeting all the
related expenses provided the bank is not having any other claims against the
for the borrower to take back the security:
indicated earlier in the policy document, the bank will resort to repossession
of security only for the purpose of realization of its dues as the last resort
and not with intention of depriving the borrower of the property. Accordingly
the bank will be willing to consider handing over possession of property to the
borrower any time after repossession and before concluding sale transaction of
the property, provided the bank dues are cleared in full. If satisfied with the
genuineness of borrower’s inability to pay the loan installments as per the
schedule which resulted in the repossession of security, the bank may consider
handing over the property after receiving the installments in arrears. In all such cases, the possession of the
property will be made within 7 (seven) working days from receipt of payment as
stated supra. However, this would be subject to the bank being convinced of the
arrangements made by the borrower to ensure timely repayment of remaining
installments in future.