Earlier ICICI Bank was imposed with a fine of Rs 50 lakh for alleged use of force and coercive methods for recovering loan dues. RBI had then asked ICICI Bank to investigate and take action against the recovery agents involved and review the system of appointing such agents to recover outstandings.

RBI had warned banks that if such incidents recurred it would take stern action and also wants banks to follow prescribed conditions while engaging recovery agents.

Banks with errant agents beware!
The Government might put a ban on banks whose recovery agents persistently resort to abusive practices to recover loans from customers. The banks which violate the RBI rules would initially be handed out a temporary ban, which may be followed by a permanent one if such practices continue.