12 Jan'2026
Policy on Collection of Dues and Repossession of Security
1. Introduction
The debt collection policy of the Bank is designed to ensure fair treatment to the borrowers as well as to the Bank with dignity and respect. Bank will not follow policies that are unduly coercive in collection of dues. The policy is formulated based on courtesy, fair treatment and persuasion. The Bank believes in following fair practices with regard to collection of dues and repossession of security and thereby fostering borrower’s confidence and long-term relationship.
Bank’s Security Repossession Policy is meant for recovery of dues in the event of default only and not on whimsical deprivation of the immovable or movable security. The policy recognizes fairness and transparency in surrender, repossession, valuation and disposal of security. All the practices adopted by the Bank for follow up and recovery of dues and repossession of security will be in consonance with the law. Security repossession procedure would be set in motion only after all attempts by the Bank to discuss with the borrower the ways and means to overcome the financial hurdles have failed or if the borrower is not contactable or avoiding contact for a reasonable period.
2.General Guidelines:
Bank officials or any other person authorised to represent the Bank with respect to collection of dues or security repossession would follow the guidelines set out below:
The borrower would be contacted at the place of their choice and in the absence of any specified place, at the place of their residence and if unavailable at their residence at the place of business/occupation.
Identity and authority of the person authorized to represent Bank for follow up and recovery of dues, would be made known to the borrowers at the first instance. Once the loan turns delinquent and the recovery agent has been assigned to the borrower, the particulars of such recovery agent assigned are communicated to the borrower through Email/SMS/Letter before the recovery agent contacts the borrower for recovery. The Bank staff or any person authorized to represent the Bank for collection of dues or security repossession, will identify themselves and display the ID Card (which includes due authorization of the Bank) issued by the Bank. Additionally, the Bank will provide the assigned agent, the copy of intimation notice sent to the borrower, which can be displayed on demand to the borrower.
The Bank would respect privacy of the borrowers.
The Bank is committed to ensure that all written and verbal communication with the borrowers will be in simple business language and the Bank will adopt civil manners while interacting with the borrowers.
Normally the bank’s representatives will contact the borrower between 08:00 AM to 07:00 PM, except for special circumstances, wherein borrower’s business or occupation requires the Bank to contact at a different time.
Borrower’s requests to avoid calls at a particular time or at a particular place would be honored as far as possible.
The Bank will document the efforts made for the recovery of dues and the copies of communication sent to customers, if any, will be kept on record.
All assistance will be given to resolve disputes or differences regarding dues in a mutually acceptable and in an orderly manner.
Inappropriate occasions such as bereavement in the family or such other calamitous occasions will be avoided for making calls/visits to collect the dues.
The Bank will also adhere to the extant regulatory guidelines on Fair Practices Code for Lenders, Outsourcing of Financial Services, Code of Bank's Commitment to Customers and Recovery Agents engaged by banks.
3. Engagement of recovery agency:
The Bank may utilize the services of recovery agencies for collection of dues and repossession of securities. Recovery agencies will be appointed as per regulatory guidelines issued in this regard. In this respect:
The name and address of all Recovery Agencies on the Bank’s approved panel will be placed on the Bank’s website for information.
Empanelment of recovery agencies with the Bank is a must, prior to assignment of any work.
Employees of the recovery agencies, after completing the mandatory Debt Recovery Agent (DRA) training, will be issued valid ID cards authorizing them to collect dues from the Bank's borrower.
In case the Bank engages the services of such recovery or enforcement or seizure agency for any recovery case, the identity of the agency will be disclosed to the borrower.
The recovery agents engage by the Bank must follow a code of conduct, governing their dealings with borrowers.
4. Giving notice to borrowers
While written communications, telephonic reminders or visits by the Bank’s representatives to the borrower’s place or residence will be used as recovery follow up measures, the Bank will not initiate any legal or other recovery measures including repossession of the security without giving due notice in writing with a provision for acknowledgment. Bank will follow all such procedures as required under law for recovery/ repossession of the security. The notice should specify the time that will be given to the borrower to pay the debt, failing which, the Bank will proceed to take possession of the security. However, if the borrower deliberately avoids acknowledging or establishing contact with the Bank then the Bank will be free to proceed with the repossession of the security.
5. Repossession of Security
Repossession of security is for recovery of dues and not to deprive the borrower of the property. The recovery process through repossession of security will involve repossession, valuation of security and realization of security through appropriate means. All these would be carried out in a fair and transparent manner. Repossession will be done only after issuing the notice as detailed above. Due process of law (including but not limited to the rules / regulations laid down under SARFAESI Act) will be followed while taking repossession of the property. The Bank will take all reasonable care to ensure the safety and security of the property after taking custody, in the ordinary course of the business and necessary cost will be charged to the borrower. Additionally, repossession of movable asset is done by the way of SARFAESI/Court order/Voluntarily surrender by the Borrower due to inability in servicing the loan.
6. Valuations and Sale of Security
Valuation and sale of property repossessed by the Bank will be carried out as per law and in a fair and transparent manner. The Bank will have right to recover from the borrower the balance due if any, after sale of property. Excess amount (out of sale proceeds) if any, will be returned to the borrower after meeting all the related expenses provided the Bank is not having any other claims against the borrower.
In respect of cases under SARFAESI Act, as per the provisions of the Act, a notice will be issued to the borrower giving 30 days’ time for payment. When sale by public auction (e-auction or other modes) is envisaged as per the SARFAESI Act, a notice will be published in two leading newspapers out of which one would be a local vernacular newspaper. The secured assets possessed under the SARFAESI Act, get displayed and updated on the Bank’s website on monthly basis.
7. Opportunity for the borrower to take back the security
As indicated earlier in the policy document, the Bank will resort to repossession of the security only for the purpose of realizing its dues as a last resort and not with intention of depriving the borrower from his/her property. Accordingly, the Bank will be willing to consider handing over possession of property to the borrower any time after repossession and before concluding sale transaction of the property, provided the Bank dues are cleared in full. If satisfied with the genuineness of borrower’s inability to pay the loan installments as per the schedule, which resulted in the repossession of security, the Bank may consider handing over the property after receiving the installments in arrears. However, this would be subject to the Bank being convinced of the arrangements made by the borrower to ensure timely repayment of remaining installments in future.
If the amounts are repaid, either as stipulated by the Bank or dues settled as agreed to by the Bank, possession of seized security will be handed back to the borrower after permission from competent authority of the Bank or Court or Debt Recovery Tribunal (DRT) concerned (if required).