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RBI bars Mahindra Finance from using third-party recovery agents

This action is based on certain material supervisory concerns observed in the said NBFC, with regard to the management of its outsourcing activities, the central bank added. 

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Mumbai (Maharashtra): The Reserve Bank of India (RBI) on Thursday said it has barred Mahindra & Mahindra Financial Services from using third-party recovery agents.

The Reserve Bank of India has, in exercise of its powers under section 45L(1)(b) of the Reserve Bank of India Act, 1934, directed Mahindra & Mahindra Financial Services Ltd. (MMFSL), Mumbai, to immediately cease carrying out any recovery or repossession activity through outsourcing arrangements, till further orders, the RBI said in a statement.

RBI

However, the statement said NBFC may continue to carry out recovery or repossession activities, through its own employees, it said.

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This action is based on certain material supervisory concerns observed in the said NBFC, with regard to the management of its outsourcing activities, the central bank added.

 

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