Excelsior Correspondent
JAMMU, Sept 28: Federation of All India Vyapar Mandal (FAIVM) raised voice against illegal process used by the recovery agents of banks/NBFCs for loan/interest recovery and appealed the Government to formulate detailed rules and policy on the issue.
Sanjay Bansal, president, J&K Federation of All India Vyapar Mandal said the post-corona lock-down has caused a deep financial crisis to traders and the general public. During this crucial time, the income of small businesses and middle class of society has been greatly affected and default has started coming in installments or interest on loan provided by banks or private lenders.
FAIVM mentioned, in a letter addressed to Finance Minister said, small businessmen get only 5% loan facility from banking system. The remaining 95% receive loans from either non-financial, finance companies or some other private sources or lenders. For those who are availing credit from Banks are getting various relief and concessions but those who have availed credit/loan from private lenders or private banks, who are about 95%, are now facing a tough time as their lenders are pressuring to repay installments and interest.
V K Bansal, National general secretary of Federation of All India Vyapar Mandal urged Union Finance Minister to make some laws for the recovery agent. FAIVM in its letter dated 26 September 26 to Union Finance Minister, suggested few guidelines which needs to be followed during recovery process.
The suggested guidelines include that every bank or financial institution should be required to submit a list of accounts of their recovery agents to the concerned police station in jurisdiction, it should be mandatory for every recovery agent to give advance information to the local police regarding the criminal history of their employees and it should be mandatory to inform the local police by the bank or financial institution and any conversation related to recovery from the debtor should be done only in the presence of police.
FAIVM hoped that the Government will formulate detailed rules and policy on the issue at the earliest and will provide some relief to businessmen in this crisis time.
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