No bank has the power to employ bouncers for the forceful recovery of loans from customers, junior finance minister Anurag Thakur said in the Lok Sabha on Monday. He added that the Reserve Bank of India (RBI) has issued a directive to appoint recovery agents only after proper police verification and fulfilling other relevant formalities. “No one has any power to appoint any musclemen or bouncers for the recovery of loans forcefully,” he said during the question hour. “The said circular prohibits lenders from resorting to undue harassment in recovering loans, viz., persistently bothering borrowers at odd hours, use of muscle power for recovery of loans, etc.,” he said. “In such cases, the RBI can consider banning the bank concerned from engaging recovery agents in a particular area for a specified period.

Source: The Telegraph July 01, 2019 07:30 UTC