Mahindra Finance News

Mahindra Finance News : The central bank has barred MMFSL from recovering loans or taking possession of assets through third party agents

Mahindra Finance News : The Reserve Bank of India (RBI) has taken a tough stand on the help taken by banks and finance companies from third parties for recovery. In one such case, RBI has taken major action against Mahindra and Mahindra Financial Services Limited (MMFSL). The central bank has barred MMFSL from recovering loans or taking possession of assets through third party agents.

Order came into force with immediate effect

The Reserve Bank of India (RBI) also said that its order is applicable with immediate effect and will continue till further orders. The RBI decision comes after the death of a pregnant woman (27) in Jharkhand’s Hazaribagh district, who was allegedly crushed to death by recovery agents last week under the wheels of a tractor.

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Instructions to stop recovery through third party

In a statement made by RBI, it was said that MMFSL can continue the activities of recovery or possession through its employees. “The Reserve Bank of India has today directed… Mahindra & Mahindra Financial Services Limited (MMFSL), Mumbai to immediately cease any recovery or possession activity through outsourcing arrangement,” the statement said.

an employee has been arrested

RBI said that this action is based on supervisory concerns observed in the outsourcing arrangement of the said NBFC. In connection with the woman’s death, the police arrested Roshan, an employee of a Mahindra Finance firm ‘Team Lease’. Mahindra Group CEO and MD Anish Shah condoled the woman’s death and assured that all aspects of the incident would be investigated.

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