Policy on Collection of Dues and Repossession of Security
I. PREAMBLE:
This Policy on Collection of Dues and Repossession of Security (hereinafter called the ‘Policy’) is a non–statutory code adopted by Canara Bank (hereinafter called the ‘Bank’) voluntarily for implementation, which sets minimum standards for collection of dues and repossession of security.
With the setting up of the Banking Codes and Standards Board of India mooted by RBI so as to promote good and fair banking practices by setting minimum standards in dealing with the customers (which term includes borrower/guarantor/co-obligant/Mortgagor/person having dues of any kind to the Bank, hereinafter called the 'customer') of the Bank and to increase transparency to have a better understanding of the reasonably expected services and also to promote a fair and cordial relationship between the Bank and its customer and foster confidence in the banking system, the Bank also adopted the Code. This Policy is issued in accordance with Clause 5 of the said Code adopted by the Bank.
II. APPLICABILITY:
It applies to the Bank and the agents engaged by it for the purpose of collection, recovery and repossession of security/ies, except taking possession and disposal of secured assets under SARFAESI Act, 2002. This Policy shall come into force with effect from 01.04.2009.
III. INTRODUCTION:
Our bank is committed to -
1. Following fair practices especially with regard to collection of dues and repossession of security.
2. Fostering customer confidence and long-term relationship.
IV. DUES COLLECTION POLICY STATEMENT:
1. Dignity and Respect to customers is our debt collection policy and we do not follow policies that are unduly coercive in collection of dues.
2. Bank's dues-collection policy is built on courtesy, fair treatment and persuasion.
V. SECURITY REPOSSESSION POLICY STATEMENT:
1. The Policy aims at recovery of dues in the event of default and is not aimed at whimsical deprivation of the property.
2. The Policy recognizes fairness and transparency in repossession, valuation and realization of security.
VI. 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 out below:
1. Customer would be contacted ordinarily at the place of his choice and in the absence of any specified place at the place of 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.
2. Identity and authority to represent will be made known to the customer at the first instance.
3. Customers’ privacy would be respected.
4. The bank is committed to ensure that all written and verbal communication with its customers will be in simple business language and bank will adopt civil manners for interaction with customers.
5. Customer calling time will be between 0700 hrs and 1900 hrs, unless the special circumstances of the customer's business or occupation demands otherwise.
6. Customer's request to avoid calls at a particular time or at a particular place will be honoured as far as possible.
7. The bank will document the efforts made for the recovery of dues including the time and number of Calls and contents of conversation and the copies of communication sent to customers, if any, will be kept on record.
8. Customer would be provided with all the information regarding dues.
9. Bank would follow all such procedures as required under law for recovery/repossession of security.
10. All assistance will be given to resolve disputes or differences in a mutually acceptable and in an ordinary manner as regards dues.
11. Inappropriate occasions such as bereavement in the family or such other calamitous occasions would be avoided generally for making calls/visits to collect dues.
12. Demeanor that would suggest criminal intimidation or threat of violence would be scrupulously avoided.
13. Bank will not initiate any legal or other recovery measures including repossession of the security without giving due notice in writing. First such notice will be sent immediately upon default by the borrower or when telephonic reminders or personal visits fail to yield result. The first notice while giving details of the amount in default will give 15 days time period for the borrower to clear the dues and regularize the account. In case the borrower fails to respond within the given period of time, a second notice will be issued explaining the consequences of non-payment and the borrower would be given a further period of 15 days to clear the dues. The consequence of non-payment could include recall of entire loan amount forthwith. In the event of the failure of the borrower to respond within the time period, a final notice will be issued after which the bank will be free to initiate such recovery measures as deemed fit. However, Bank may waive any of the above said notices by recording reason thereof, in case circumstance so warrants.
14. Valuation will be done before sale of the security and sale of security repossessed by the Bank will be carried out as per law and in a fair and transparent manner. The Bank will have right to recover from the customer the balance due if any, after sale of the security. Excess amount if any, obtained on sale of property will be returned to the customer after meeting all the related expenses and adjusting any dues to the Bank.
15. After completion of the repossession, the security will be preserved till the same is disposed of.
16. The Security, which is taken possession by the Bank, will be released to the customer when the customer makes the payment of entire dues, at any time but not later than the sale of the Assets.
VII. GRIEVANCE REDRESSAL:
a) The Bank for the purpose of fulfilling the objective of this ‘Model Policy’ will set up a Grievance Redressal Cells at Head Office, Circle Offices and Regional Offices.
b) The Customer having any grievance against any Branch/Office of the Bank, in respect of the items stated under Clause - VI above, may bring the same to the notice of the incharge/Head of the Branch/Office at the first instance. If the complaint is not redressed to the satisfaction of the customer, customer can file a written complaint to the Grievance Redressal Cells at Regional Office/Circle Office as the case may be within whose jurisdiction the Branch or the Office of the Bank is located or at Head Office, not later than thirty days from the date of cause of action.
c) On receipt of the written complaint, the incharge of the Grievance Redressal Cell at Regional Office/Circle Office shall, as expeditiously as possible, and in any case not later than 15 days (30 days in case of complaint to H.O.) from the date of receipt of the complaint, initiate appropriate steps for redressal of the complaint unless the nature of complaint is such that it requires verification of voluminous facts and figures.
d) The head of the Grievance Redressal Cells of the Bank are:
| Regional Office
|
DM/AGM incharge of RO
|
R & F Section |
| Circle Office
|
DGM of the Circle
|
R & L Section
|
| Head Office |
GM of Recovery Wing, HO
|
Recoveries Section |
e) The decision taken by the incharge of the Grievance Redressal Cells shall be final and shall be informed to the customer in writing.
However, the bank, after considering the nature of the complaint and /or security, may proceed with repossession/disposal of security, irrespective of the pendency of the complaint by the Customer.