New Delhi: No bank has the power to employ bouncers for forceful recovery of loans from customers, Union Minister of State for Finance Anurag Thakur said in the Lok Sabha on Monday. Singh also said there is a clear directive of the Reserve Bank of India (RBI) 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 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: Mint July 01, 2019 08:15 UTC