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RBI Asks Mahindra & Mahindra To Immediately Stop Using Recovery Agents

An incident took place in Jharkhand's Hazaribagh where a pregnant woman was allegedly crushed under the wheels of a tractor by a recovery agent of Mahindra Finance

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The RBI directs Mahindra and Mahindra Financial Services to never again use outside recovery agens. This comes after a pregnant lady was knocked down to death in Jharkhand by a recovery agent of the organisation, as reported by NDTV.

The incident took place in Jharkhand's Hazaribagh where a pregnant woman was allegedly crushed under the wheels of a tractor by a recovery agent of Mahindra Finance. Local police informed the media that the officials of the finance organisation did not inform at the police station prior moving to the victim's residence for the recovery of the tractor.

Immediately after this incident, the central bank directed the finance conpany to stop recovery activities through outsourcing arrangements. However, it may continue recovery activities through their own employees.

RBI said, this activity depends on specific material administrative concerns observed in the said NBFC, with respect to the administration of its recovery exercises.