The Chhattisgarh Government has asked all District Collectors and Superintendents of Police to stop banks and finance companies from forcibly recovering loan money from borrowers in the state.
The government has asked Collectors and SPs to take action as per RBI guidelines and Supreme Court judgements against agents of banks and finance companies using coercive tactics to recover loans, officials sources today said.
Some banks and finance companies take help of anti-social elements to recover loans. The recovery agents also seize vehicles bought on loans after their owners fail to regularly pay EMIs. Such practises have been banned by the Supreme Court, which has said only legal means are to be used to ensure borrowers repay loans, they said.
