The Reserve Bank of India on Monday fined RBL Bank Ltd for not complying with certain directives on loan recovery agents.
The RBI noticed deficiencies in regulatory compliance after it examined complaints received against the Mumbai-based lender's recovery agents during the financial years 2018 -- 19 to 2021 - 22, the central bank said.
RBI said RBL did not ensure that the loan recovery agents it engaged did not resort to intimidation or harassment, and that it did not ensure police verification of the agents before employing them.
Last year, the RBI issued a circular advising financial institutions to strictly ensure that they did not resort to intimidation or harassment of any kind and that any violations would be viewed as serious. The action is not intended to make any judgement on the validity of any transaction or agreement entered by the bank with its customers, said the RBI in a statement.