Module: | KYC, NPAs, Advances & Investment Valuations
Q201: Consider the following statements regarding the conduct and engagement of recovery agents:
1. Recovery agents for general loans are permitted to contact borrowers strictly between 08:00 hours and 19:00 hours.
2. For microfinance loans, field staff may visit the borrower's residence on the very first day of default without requiring them to visit a central designated place.
3. Persistent telephonic recovery calls for microfinance loans before 09:00 a.m. and after 06:00 p.m. are officially classified as a banned/harsh recovery practice.
4. All engaged Direct Recovery Agents are legally mandated to complete a specific certificate course instituted by the Indian Institute of Banking and Finance (IIBF).
Which of the statements given above is/are correct?
2. For microfinance loans, field staff may visit the borrower's residence on the very first day of default without requiring them to visit a central designated place.
3. Persistent telephonic recovery calls for microfinance loans before 09:00 a.m. and after 06:00 p.m. are officially classified as a banned/harsh recovery practice.
4. All engaged Direct Recovery Agents are legally mandated to complete a specific certificate course instituted by the Indian Institute of Banking and Finance (IIBF).
Which of the statements given above is/are correct?
✅ Correct Answer: A
The correct answer is A. Statement 1 is correct: The master directions set the contact window for general loan recovery agents exclusively between 08:00 hours and 19:00 hours.
Statement 2 is incorrect: The regulatory instructions strictly dictate that microfinance recovery must occur at a central designated place.
Field staff can only visit a residence or workplace if the borrower fails to appear at the central place on two or more successive occasions.
Statement 3 is correct: The guidelines explicitly ban microfinance recovery calls before 09:00 a.m. and after 06:00 p.m., classifying it as a harsh recovery practice.
Statement 4 is correct: The framework makes it a mandatory regulatory requirement for all direct recovery agents to possess a valid certification from the Indian Institute of Banking and Finance (IIBF).
Statement 2 is incorrect: The regulatory instructions strictly dictate that microfinance recovery must occur at a central designated place.
Field staff can only visit a residence or workplace if the borrower fails to appear at the central place on two or more successive occasions.
Statement 3 is correct: The guidelines explicitly ban microfinance recovery calls before 09:00 a.m. and after 06:00 p.m., classifying it as a harsh recovery practice.
Statement 4 is correct: The framework makes it a mandatory regulatory requirement for all direct recovery agents to possess a valid certification from the Indian Institute of Banking and Finance (IIBF).