RBI action has no impact on business, says M&M Financial Services

The RBI action of barring M&M Financial from outsourcing recovery agents comes after the Harazibagh incident where a pregnant woman was mowed down to death

Mahindra & Mahindra (M&M) Financial Services on Friday said the Reserve Bank of India’s (RBI’s) barring it from outsourcing recovery agents would not materially impact its financials but would temporarily bring down the repossession of vehicles by about 3,000–4,000.

“The vehicles that are repossessed are mostly classified under Stage 3 and, therefore, this temporary halt to repossession activity using the third-party agencies is not expected to have any material impact either on the financials or on Net Stage 3,” the company said in a statement.

The RBI’s first-of-a-kind action came days after a 22-year-old pregnant woman died in Jharkhand’s Hazaribagh