Nothing Creditable

The RBI draft guidelines on debt collection has barred banks, NBFCS and credit card operators from using coercive methods to recover dues. If the guidelines are implemented, then threatening calls and strong-arm tactics will be history. Also, the humiliation in public of a cardholder would be deemed a criminal act. Further, personal details of card-holders can no longer be divulged to recovery agents or passed on to other marketing agencies. At present, there are very few regulations that govern credit card companies and NBFCS. Debt recoveries through musclemen had become the norm and the RBI felt it was time to step in.