RECOVERY-PROCESS BY BANKS AND NBFCS FROM LOAN-DEFAULTERS SHOULD BE MODIFIED

Bureau,Odishabarta

RECOVERY-PROCESS BY BANKS AND NBFCS FROM LOAN-DEFAULTERS SHOULD BE MODIFIED TO END WITH INHUMANITY ADOPTED IN RECOVERY-PROCESS

DELHI:NBFCs and banks adopt all types of inhuman torture including sending goons and filing criminal court-cases under section 138 of Negotiable Instrument Act in far-away cities even though their offices may also be in the city where loan is given for recovery of unsecured loans. Rule should be to file such court cases compulsorily in the city or nearest city of the address where loan is given (in case NBFC or bank may not office in the city where loan is given). Banks and NBFCs get signed arbitration-clause according to their convenience. Rule should be that arbitrator must be in the city or nearest city of the address where loan is given (in case NBFC or bank may not office in the city where loan is given). NBFCs and banks manage legal-notice served without actually serving it to the borrower by managing courier-services.Rule should be to send all legal-notices in respect of recovery only through Registered or Speed Post of Indian Posts.

It is illogical that NBFCs are allowed to earn huge profits through high interest-rates on funds financed by public-sector banks. There should be a complete ban on banks financing NBFCs for giving loans. Instead public-sector banks may give loans directly after ascertaining security of loans. Luring people for taking loans through phone-calls should be altogether banned.

Since secured loans are given after complete satisfaction of security including properties pledged, loans may be taken as completely settled after seizure of secured assets. Presently banks and NBFCs deliberately sell pledged properties at throw-away prices with their officers getting under-table money as a share of difference of market-price and auction price, and thereafter initiating civil court cases to recover balance amount of money.

Input;Mr.Subash