Model Code on Collection of Dues and Repossession of Security

 Model Code for Collection of Dues and Repossession of Security (CDRS code), is a non-statutory code issued on voluntary basis and is commended to the members for adoption and implementation.

II. Applicability :

This code will apply to a member bank as and when the member adopts it with or without modifications and a declaration to the Public at large by the member bank in any medium is made to that effect.

III. Contents :

1. Introduction
2. Dues Collection Policy Statement
3. Security Repossession Policy Statement
4. General guidelines
5. Grievance Redressal.

1. Introduction

A. Our Bank is committed to

• Following fair practices especially with regard to collection of dues and repossession of security
• Fostering customer confidence and long term relationship

2. Dues Collection Policy Statement

• Dignity and Respect to customers is our Debt Collection Policy and we do not follow polices that are unduly coercive in collection of dues.
• Our Bank’s dues-collection policy is built on courtesy, fair-treatment and persuasion.

3. Security Repossession Policy Statement :

• Our Security Repossession Policy aims at recovery of dues in the event of default and is not aimed at whimsical deprivation of the property.
• The Policy recognizes fairness and transparency in repossession, valuation and realizarton of security.

4. General guidelines :

All the members of the staff or any person authorized to represent our bank in dues collection or/and security repossession would follow the guidelines set below :

• Customer would be contacted ordinarily at the place of his choice and in the absence of
any specified place at the place his residence in the case of retail customers and in the
place of business or residence as the case may be in the case of other customers.
• Identity and authority to represent would be made known to the customer at the first
instance
• Customer privacy would be respected
• Interaction with the customer would be in acceptable business language
• Customer calling time would be between 0700 hrs and 1900 hrs, unless the special circumstances of the borrower’s business or occupation demands otherwise.
• Customer requests to avoid calls at a particular time or at a particular place would be honored as far as possible.
• Time and number of Calls and contents of conversation would be documented.
• Customer would be provided with all the information regarding dues and necessary notice would be given for enabling discharge of dues.
• Reasonable notice would be given before repossession of security and its realization.
• All assistance would be given to resolve disputes or differences in a mutually acceptable and in an ordinary manner, if any as regards dues.
• During visits to customers’ place for dues collection, decency and decorum would be maintained.
• Inappropriate occasions such as bereavement in the family or such other calamitous occasions would be avoided for making calls/visits to collect dues.
• Demeanor that would suggest criminal intimidation or threat of violence would be scrupulously avoided.

5. Grievance Redressal

• Our Bank would have a Grievance Redressal Cell/Department/Centre within or outside the organization.
• Our Bank would make available all the details, namely;
--Where a complaint can be made
--How a complaint should be made 
-- When to expect a reply
--Whom to approach for redressal or grievance etc.

• Response to a complaint whether positive or negative or requiring more time for redressal would be given within a maximum period of four weeks from the date of complaint, unless the nature of complaint is such that requires verification voluminous facts and figures.