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Code for Collection of Dues and Repossession of Security

Preamble

This Code for Collection of dues and Repossession of Security (CDRS) is a non-statutory code issued on voluntary basis. Bank of Baroda, (hereinafter called the `Bank') hereby adopts this Code for Collection of Dues and Repossession of Security. It lays down guidelines to have fairness and transparency in the collection, recovery and repossession of security/ies.

Applicability

It applies to the Bank and the agents engaged by it for the purpose of collection, recovery and repossession of security/ies.

Introduction

The Bank is committed to following fair practices especially with regard to collection and recovery of its dues from its borrowers (hereinafter referred to as "customer"). At the same time the Bank is also committed to follow fair practices in this regard to foster customer confidence and to retain the image of the Bank as an institution, which is fair in its dealings even with defaulters.

Dues Collection Policy Statement

Although the Bank is committed to collection /recovery of its dues and repossession of security/ies, the dignity of and respect for the customer is central to our Debt Collection Policy. Our bank’s dues collection policy is built on courtesy, fair treatment and persuasion. The bank shall not follow policies, which are unduly coercive in collection of dues.

Security Repossession Policy Statement

The Bank's Security Repossession Policy aims at recovery of dues in the event of default and is not aimed at whimsical deprivation of the property. The Bank shall resort to repossession of the security/ies only when the collection/ recovery of dues is not forthcoming in spite of request made and the policy for repossession shall be in accordance with the terms and conditions of the loan documents and within the legal framework. The policy recognises fairness and transparency in repossession, valuation and realisation of security/ies.

General Guidelines

All the members of the staff or any person authorised to represent the Bank in collection/recovery of dues and/or Repossession of Security/ies shall follow the guidelines as set out below:

  • The customer would be contacted ordinarily at the place of his choice and in the absence of any specified place, at the place of his residence in the case of retail customers and in the place of business or residence as the case may be in the case of other customers.
  • Customer's privacy would be respected as far as practicable.
  • Identity and authority of the person to represent the Bank would be made known to the customer when he is contacted.
  • Customer would be provided with the information regarding the dues and necessary notice would be given for enabling discharge of dues.
  • Reasonable notice would be given before Repossession of Security and its realisation, unless the borrower is about to dispose of/remove the whole or any part of the security/ies, from the locality where it ordinarily remained or by whom it is used or caused to be remained or used, as the case may be, at the time of creation of security.
  • During visit to customer's place for collection of dues, decency and decorum would be maintained.
  • Inappropriate occasions such as bereavement in the family or such other calamities would be avoided for making calls/visits to collect dues.
  • Demeanour that would suggest criminal intimidation or threat of violence would be avoided.

Grievance Redressal

The Bank shall have a Grievance Redressal Committee at the Zonal Offices to resolve disputes arising out of violation of this code. The Grievance Redressal Committee shall consist of the following persons:-

  • Zonal Head -Chairman
  • Chief Manager (Co-ordination)
  • Chief Manager (Co-ordination)
  • Chief Manager (Legal) / Law Officer
  • Sr. Manager (Vigilance) -Convenor

The quorum of the committee shall be three (3).

The complaints can be made at the Zonal Offices and shall be addressed to the Grievance Redressal Cell (Recovery and Repossession), Bank of Baroda, Zonal Office.

The complaint should contain name and address of the customer making the complaint, contact number, name of the Branch and the account number, date of occurrence of the incidence, brief narration of the complaint, with sequence of events and reliefs sought, if any.

Responses to complaint whether positive or negative requiring more time for redressal would be given within –4- weeks from the date of complaint unless the nature of complaint is such that it requires verification of voluminous facts and figures.

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