RBI Governor Shaktikanta Das said that the customer harassment by loan recovery agents of the banks would not be tolerated.
New Delhi: Reserve Bank of India (RBI) Governor Shaktikanta Das, on Friday (June 17), said that the customer harassment by loan recovery agents of the banks would not be tolerated, clarifying the central bank’s stand against the modus operandi used by loan sharks to recover money from defaulters. In a press conference, the RBI Governor noted that the use of harsh methods including calling the customer from time to time and talking in rough language among others by agents for recovery of loans is absolutely not acceptable. He pointed out that banks while banks have the right to recover the dues from borrowers, shouldn’t be troubled for not repaying the loan.
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The RBI governor also shared concerns over the use of ‘big tech’s data’ in the loan approval process. “Big Tech’s play in lending activities using customer data and sophisticated algorithms can lead to systemic concerns like over-leverage and inadequate quality assessment of borrowers,” he said. Companies such as Google, Amazon, Apple and Meta are referred to as Big Tech. (ALSO READ:
While addressing the ‘Modern BFSI Summit 2022’ organised by a media publication, he said that the entry of Big Tech firms poses concerns related to competition, data sharing, data protection and operational resilience of critical services.
Das also refuted criticism of the RBI being behind the curve in its policies, making it clear that the consequences of focusing on the 4 per cent inflation target would have been “disastrous” for the pandemic-hit economy.
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“I feel that we are very much in line with the requirements of our time, the RBI has acted proactively and I would not agree with any perception or any sort of description that the RBI has fallen behind the curve,” Das said.
His comments came two days after former Chief Economic Advisor Arvind Subramanian co-authored an article blaming the RBI for acting late on inflation and being behind the curve, Das said the central bank acted as per the evolving economic developments and also gave out a timeline of its actions to explain the shift, according to a report by PTI.
