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The Reserve Bank of India (RBI) on Thursday said it has barred Mahindra & Mahindra Financial Services from using third-party recovery agents.
The Reserve Bank of India has, in exercise of its powers under section 45L(1)(b) of the Reserve Bank of India Act, 1934, directed Mahindra & Mahindra Financial Services Ltd. (MMFSL), Mumbai, to immediately cease carrying out any recovery or repossession activity through outsourcing arrangements, till further orders, the RBI said in a statement. However, the statement said NBFC may continue to carry out recovery or repossession activities, through its own employees, it said. This action is based on certain material supervisory concerns observed in the said NBFC, with regard to the management of its outsourcing activities, the central bank added. (ANI)
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