RBI fines Bajaj Finance Rs 2.5 crore for recovery agent harassment

Central bank says firm violated a specific direction to ensure full compliance with fair practices code in letter and spirit

The Reserve Bank of India (RBI) has imposed Rs 2.50 crore monetary penalty on Bajaj Finance for violating RBI’s directions on fair practices code (FPC) and outsourcing of financial services by a non-banking financial company.

The central bank said Bajaj Finance violated a “specific direction to the company to ensure full compliance with FPC in letter and spirit,” and that it failed to ensure “that its recovery agents did not resort to harassment or intimidation of customers as part of its debt collection efforts and thereby failing to adhere to the aforesaid directions issued by RBI. There were also persistent/repeat complaints about recovery and collection methods adopted by the company,” the central bank said in a notification.