Reserve Bank of India instructed that the finance companycan no longeruse outside recovery agents.
Reserve Bank of India today directed Mahindra & Mahindra Financial Services Ltd. to immediately stop carrying out any recovery through outsourcing agents.
Reserve Bank of India instructed that the finance company can no longer use outside recovery agents.
The development comes after a pregnant woman in Jharkhand died after she was allegedly mowed down under the wheels of a tractor by a recovery agent of the finance company in the Hazaribagh district of Jharkhand.
Local police of Hazaribagh told media outlets that the officials of the finance company did not inform the local police station before going to the residence of the victim for the recovery of the tractor.
“We will investigate this incident from all aspects and will also examine the practise of using third-party collection agencies. We stand with the famly this moment of grief,” Dr Anish Shah, Managing Director and Chief Executive Officer of Mahindra Group said on the incident in a press release.