State Minister of Finance govt of India Anurag Thakur told Lok Sabha that banks could not use bouncers and agents for recovery of loans. He said only after due police verification and carrying out other formalities could banks send agents for recovery.
In the event of continuous violation of the guidelines, RBI could put curbs on such banks, Thakur said.
Several incidents of banks sending bouncers or agents for recovery of loans have lately come to light. It is worth mentioning that there are proper guidelines laid down by the apex bank in this regard.
