The Fair Practices Code, as mentioned herein below, is in conformity with these Guidelines on Fair Practices Code for NBFCs as contained in the aforesaid RBI Circulars. This code sets minimum Fair Practice standards for Akhshayaa Finance Bhaarath Limited (the Company) to be followed while dealing with its customers.
OBJECTIVE OF THE CODE :
The code has been developed with an objective of:
• Ensuring fair practices while dealing with the customers.
• Greater transparency enabling the customers to have better understanding of the product and to enable the customer to take informed decisions.
• Building customer confidence in the Company.
• Promote a fair and cordial relationship between customers and the company
OUR KEY COMMITMENTS & DECLARATIONS:
A) Applications for Loan and their Processing:
i) Loan application forms will include necessary information, which affects the interest of the borrower, so that a meaningful comparison with the terms and conditions offered by other NBFCs can be made and informed decision can be taken by the borrower. The loan application form will indicate the documents required to be submitted with the application form.
ii) The company has a system of giving acknowledgement for receipt of all loan applications. The Company will inform the Borrower about its decision within reasonable period of time from the date of receipt of all the required information in full.
iii) All communications to the customers would be done in vernacular or in language understood by the customer.
B) Loan appraisal and terms/ conditions:
i) The company will convey in writing to the borrower by means of sanction letter or otherwise, the amount of loan sanctioned along with the terms and conditions including annualized rate of interest and method of application thereof and keep the acceptance of these terms and conditions by the borrower on its record. The Company will specify in the loan agreement rate of penal interest to be charged for late repayment.
ii) The loan sanction letter and all communications to the borrower will be in the vernacular language or a language understood by the borrower.
iii) The Company will furnish copy of the loan agreement to the borrower at the time of sanction or disbursement of loan.
C) Disbursement of Loans including changes in Terms and Conditions:
i) The company will give notice to the borrower of any change in the terms and conditions including disbursement schedule, interest rates, service charges, prepayment charges etc. We will also ensure that changes in interest rates and charges are effected only prospectively. A suitable condition in this regard will be incorporated in the loan agreement.
ii) Decision to recall / accelerate payment or performance under the agreement willbe in consonance with the loan agreement.
iii) The Company will release all securities on repayment of all the dues or on realization of the outstanding loan amount subject to any legitimate right or lien for any other claim that the Company may have against the borrower. Where such right of set off is to be exercised, the borrower will be given a notice about the same with full particulars about the remaining claims and the conditions under which the Company is entitled to retain the securities till the relevant claim is settled/paid.
i) The Company will not interfere in the affairs of the borrower except for the purposes provided in the terms and conditions of the loan agreement (unless new information, not earlier disclosed by the borrower, has come to the notice of the Company)
ii) In case of receipt of request from the borrower for transfer of borrowed account, the consent or objection of the company will be conveyed within 21 days from the
date of receipt of request. Such transfer will be as per transparent contractual terms in consonance with law.
iii) In the matter of recovery of loans, the company will not resort to undue harassment viz. persistently bothering the borrowers at odd hours, use of muscle power for recovery of loans, etc.
E) Grievance Redressal Mechanism:
i) All grievances received in writing or otherwise shall be recorded and forwarded to the Grievance Redressal Officer of the Company.
ii) The customers can approach the Grievance Redressal Officer. The name and contact of the Grievance Redressal Officer is as follows:
Name : Mr. P R Jaikumar
Address : No.354, East Coast Road, Neelankarai, Chennai – 600 115
Tel. No. : 044- 24493700
Email Id : email@example.com
iii) In case the response received through the above channels are not satisfactory, they can write to the Head of our Grievance Redressal Cell at:firstname.lastname@example.org
iv) We assure a response to letters / emails received through this channel within 7 working days.
v) All Grievances shall, in all cases, be resolved within 30 days, if the complaint/dispute is not redressed within a period of one month the customers may appeal to the officer-in-Charge at the Regional Office of DNBS of RBI of Chennai jurisdiction. The details of DNBS is as given below:
General Manager, Department of Non-Banking Supervision
Reserve Bank of India, Chennai Regional Office,
Fort Glacis, RajajiSalai, Chennai – 600001.
Ph. No: 044- 25393406, 25399283/84 Fax. No: Fax No: 044-25393797
Email id: email@example.com
F) Mandatory display requirements:
i) The Company displays the following information prominently, for the benefit of the customers in all the branches:
• Appropriate arrangement for receiving complaints and suggestions.
• The name, address and contact number of the GrievancesRedressalOfficer
G) Regulation of Excessive Interest charged:
i) The Company has laid down appropriate internal principles and procedures in determining interest rates and processing and other charges.
ii) The Company has adopted an interest rate model taking into account cost of funds, margin and risk premium for determining rate of interest to be charged for loans and advances.
iii) The rate of interest to be charged depends much upon the gradation of the risk of borrower viz. the financial strength, business, regulatory environment affecting the business, competition, past history of the borrower etc.
iv) The rates of interest and the approach for gradation of risks will be made available on the web-site of the companies or published in the relevant newspapers. The information published in the website or otherwise published will be updated whenever there is a change in the rates of interest.
v) The rate of interest will be annualised so that the borrower is aware of the exact rates that would be charged to the account.