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 on 29.11.2016 and reviewed by the Board of Directors on 21.02.2019.
It is, and shall be, the policy of the company to make loan products available to all eligible 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.
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) for gold loans 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.
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.
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 four member Grievances Redressal Committee under the leadership/chairmanship of M.S Predeep, CEO; V.Unnikrishnan, General Manger; P.N.Sandeep and K.T.Narayanan, Deputy CEO’s 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|
|Sri. M.S Pradeep Managing Director||8606048600, firstname.lastname@example.org|
|The General Manager
Reserve Bank Of India,
Department of Non-Banking Supervision
Bakery Junction, Thiruvanathapuram. Pin 695033
|0471 2338818, email@example.com|
|CUSTOMER GREIVENE COMMITTEE|
|1. M S PREDEEP||MD/CEO|
|2. P N SANDEEP||DY. CEO|
|3. K T NARAYANAN||DY. CEO|
|4. V UNNIKRISHNAN||GM|
| CHAIRMAN OF THE COMMITTEE : M S PREDEEP
CONVENOR: V UNNIKRISHNAN
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.