RBI urges Mahindra Finance not to use outside agents after debt collectors kill pregnant woman
Hazaribagh: Mahindra & Mahindra Financial Services Ltd. was ordered by the Reserve Bank of India to stop using outside debt collectors. It comes after a pregnant woman was mowed down in Jharkhand by a company recovery worker, NDTV reported.Also Read – RBI revokes license of Laxmi Co-operative Bank of Maharashtra, depositors can claim THIS amount
RBI ordered the financial company Mahindra & Mahindra Financial Services Ltd. to immediately stop making any collections through outsourced agents. This was in response to the Hazaribagh incident of Jharkhand where a pregnant woman was allegedly mowed under the wheels of a tractor by a financial company recovery officer. Also Read – SBI PO Recruitment 2022: Notification released for 1,673 positions, check when and how to apply
Local police in Hazaribagh told the media that officials from the financial company did not notify the local police station before going to the victim’s home for the recovery of the tractor, according to a report by NDTV. Also Read – UPI Payment Linked to RuPay Credit Card Via QR Code Begins; Customers of CES 3 banks will be the first to benefit
In a statement, RBI said, “Ordered Mahindra & Mahindra Financial Services Ltd. (MMFSL), Mumbai, to immediately cease all recovery or repossession activities through outsourcing arrangements, until further notice. order”. “However, said NBFC may continue to conduct salvage or repossession activities, through its own employees,” it added.
RBI said this action is based on some significant oversight concerns observed in the said NBFC, in relation to the management of its outsourcing activities.
The woman who was killed by the Mahindra recovery agent was the daughter of a specially disabled farmer. The recovery officer refused to listen to the farmer’s plea and continued driving the tractor when his pregnant daughter ran after the vehicle and was crushed to death under its wheels. She was three months pregnant.
Later, Mahindra Group CEO and MD Anish Shah said: “We will investigate this incident in all its aspects and also undertake a review of the practice of using third party collection agencies that exist.”