FAIR PRACTICES CODE-2016
The Reserve Bank of India vide its Circular No. DNBS.CC.PD.No.266 / 03.10.01 / 2011-12 dated 26 March 2012 issued guidelines on Fair Practices Code (FPC) for all NBFC’s covering the general principles on adequate disclosures on the terms and conditions of a loan, adopting a non-coercive recovery method. Based on this, PNY Sabha Finance Limited formulated this policy known as Fair Practice Code (FPC) as approved by the Board of Directors on 29.11.2016.
It is, and shall be, the policy of the company to make loan products available to all qualified applicants without discrimination on the basis of race, caste, color, religion, sex, marital status or physically challenged. All customers shall be treated consistently and fairly. Employees will offer assistance, encouragement and service in a fair, equitable, transparent and consistent manner. We will preserve the ever best customer relation and adopt fair practices in dealing with customers.
LOAN APPRAISAL TERMS AND CONDITIONS.
The company will make available the loan application forms preferably in the vernacular language and make sure that all the relevant information such as eligible loan amount, interest, penal interest, tenure, processing fee etc. made known to the customer and is disclosed at the time of considering the application. Loan application forms shall include necessary information which affects the interest of the borrower and also indicate the documents required to be submitted along with the application form.
The Company shall ensure that a loan sanction letter (pawn ticket) is given to the customer containing all the terms and conditions governing the loan facility in the local language or other language understood by the customer. The loan sanction letter (pawn ticket) will also mention the loan amount, loan account number, interest rate, scheme details, charges, loan processing fees etc. The loan sanction letter (pawn ticket) which will bear the signature of the authorized official of the company will also serve as a receipt for the security (gold) pledged at the branch by the customer.
The company will inform the customer of the changes in the loan scheme opted by him affecting his interest and will not execute it retrospectively.
- All communication to the borrower shall be either in English or in Malayalam
- The company shall disclose all relevant information relating to a loan/product such as eligible loan amount, interest rate, penal/overdue interest, methodology of interest calculation etc before sanction of the loan so that as a meaningful comparison with the terms and conditions offered by others may be done before taking a decision.
- 3. Acknowledgement will be issued to loan applicants wherever applicable. In normal course the Company will sanction /reject an application within 30 days time except in the case of gold loan where the loan will be sanctioned/ rejected instantaneously.
- Loan application form will require the prospective customer to state the information for KYC norms and information for legal and regulatory requirements. KYC guidelines stipulated by RBI shall be followed with adequate due diligence of the Customer.
- The company shall issue a copy of Pawn Ticket/Sanction Memorandum in vernacular language or in a language as understood to the borrower showing the amount sanctioned.
- All terms and conditions applicable to the loan, eligible loan amount, processing fee, details of security items /documents, rate of interest and method of interest application with penal/overdue interest provisions etc shall be indicated in the loan document and confirmed by the borrower by affixing his signature thereon.
- The Company will assay the purity of the gold jwellerry with primary tests using acid and stone. If any further check is needed, the services of Jewell appraisers will be utilized. The amount of advance on the security of a jwellerry will be decided only after the assay of the Gold ornaments by any of the aforesaid methods and purity will be expressed in terms of 22 carat gold.
- After appraisal, if the loan is sanctioned by the company, the company will issue sanction letter in writing in vernacular language understood by the borrower by mentioning all the conditions pertaining to the loan.
- All the terms and conditions of the loan shall be accepted by the borrower by signing the loan document before disbursement of the loan amount.
- The company will furnish a copy of loan agreement to the borrower preferably in the vernacular language or in a language as understood to the borrower.
- Any changes in the terms and conditions of loan will only be made prospectively.
- After loan agreements are fully executed along with submission of proper KYC documents of borrower, the loan shall be disbursed by the company to the borrower.
- The company will not, as a matter of fair dealing, normally recall the loan before the initially agreed tenure except in unanticipated circumstances where company’s interests are adversely affected e.g.:- when the value of the security diminishes substantially, or its quality is found to be not acceptable, or due to any regulatory / government directives, etc. In all such cases proper and reasonable notice shall be given to the customer before recalling the loan.
- Normally the Company shall release all securities on repayment of the dues or on realization of the outstanding amount of loan and all other dues on that account. But The Company has the right to demand regularization or closure of any other account due from the borrower. If such right to set off is to be exercised, the borrower shall be given notice about the same with full particulars about the remaining claims.
The Company shall frame appropriate internal principles and procedures for determining the interest rates and processing and other charges. While fixing the interest rate of loan, the direct cost incurred by the company on the borrowed funds as well as other factors such as Employee cost, operational expenses, a fair return for the capital employed, etc., will be taken into consideration.
In the matter of recovery of loans, the company will not resort to any undue harassment to the borrower viz. persistently bothering the borrowers at odd hours, use of muscle power for recovery of loans, rude behavior of staff etc.
The Company will make all possible soft or persuasive efforts to get the customer to repay the dues without resorting to disposal of the security. The Company does not accept nor will it encourage the use of any coercive or hard measures to recover its dues from the customer.
The Company will deliver the security (gold) to the customer immediately upon settlement of the loan in the same condition as was at the time of sanction of the loan.
The Company shall issue a signed and, normally, a system generated receipt for all cash payments made by the customer immediately. The Company shall also accept payments vide cheques, demand drafts, electronic transfers etc. subject to the condition that return of the security (gold) will be made only after confirmation of realization.
The Company will resort to disposal of security only as a last resort and that too after adequate and proper notice to the borrower. In case of Gold loan, the Company will dispose the security only by conducting auction as per the directions of the Reserve Bank of India. The company will confirm the adherence of the directions prevailing in the case of assaying of the security.
In case party fails to redeem the gold ornaments pledged, even after repeated request, Company will do the following with respect to auctioning of pledged gold ornaments.
- Ordinary notices as well as Registered notice shall be issued well in advance at least 30 days prior to auction
- The auction will be conducted in the same town or Taluk in which the branch that has extended the loan is located.
- Paper publication will be done in two local papers to convey that such and such gold accounts are to be put into auction, in case it is not redeemed within the stipulated time , showing the place and time of proposed auction. [one paper publication shall be in local language].
- While auctioning the gold, Company shall declare a reserve price for the pledged ornaments. The reserve price for the pledged ornaments should not be less than 85% of the previous 30 day average closing price of 22 carat gold and value of the jewellery of lower purity in terms of carats should be proportionately reduced.
- Before taking into auction quality and purity of ornaments shall be ascertained and reserve price have to be fixed.
- The Company shall provide full details of the value fetched in the auction and the outstanding dues adjusted and any amount over and above the loan outstanding should be payable to the borrower.
- g. Company shall disclose in our annual reports the details of the auctions conducted during the financial year including the total number of loan accounts, outstanding amounts, value fetched and whether any of its sister concerns participated in the auction.
The company will put in place an effective customer grievance redresal mechanism. The Company will display prominently at all branches details of nodal officer and the appellate authorities with name, designation and contact numbers/email-Id. The company constituted a three member Grievances Redressal Committee under the leadership/chairmanship of M.S Predeep, CEO; V.Unnikrishnan, General Manger; and K.T.Narayanan, Deputy CEO as the members at Head Office Level. All the customer grievances will be addressed by the committee within 15 days from the date of receipt. An appropriate decision will be intimated to the complainant, within seven days from the date of decision of the committee. All the grievances/complaints considered by the committee will be brought to the notice of the Board of Directors in its next meeting.
The company will also display at the branches the details of the officer of the Department of Non-Banking Supervision of RBI (with full contact address, telephone number and e-mail id) which has issued the Certificate of Registration so as to enable the customers to take up their grievances to them in case it is not resolved within 30 days.
|NAME OF THE NODAL OFFICER/APPELATE AUTHORITY||PHONE& EMAIL|
|CONCERNED BRANCH MANAGER||AVAILABLE AT BRANCH|
|CONCERNED AREA MANAGER||AVAILABLE AT BRANCH|
|THE GENERAL MANAGER
RESERVE BANK OF INDIA,
Department of Non-Banking Supervision
BAKERY JUNCTION,THIRUVANATHAPURAM PIN 695033
|0471 2338818, firstname.lastname@example.org|
- a) All steps shall be taken by the nodal officer to implement this FPC at all the offices of the Company.
- b) The Board shall have periodical review of the FPC, compliance of FPC and the functioning of the Grievance redressal mechanism.
Unless authorized by the borrower, the company will treat all personal information and transaction details of the Customer as private and confidential and will not reveal to anyone except required (i) under statutory or regulatory laws, (ii) under duty to the public (iii) in the interest of the Company to Banks/Financial institutions/ Group and Associate Companies of the Company.