After RBI missive, FIDC asks NBFCs to revise codes of conduct

Has asked them to insert penalty cause for repeated breaches

The Finance Industry Development Council (FIDC) has asked its members to revise their codes of conduct and insert graded penalty clauses for repeated breaches, especially those relating to recoveries, by outsourcing agencies. The move comes after RBI red-flagged increasing complaints about alleged high-handed practices by outsourcing agencies in recovering dues.

The members should introduce exhaustive dos and don’ts for the agencies and the agents (and get them) to adopt principles of fair means of treating customers, FIDC in a statement.

Industry lobby group FIDC suggested the code of conduct and “dos and don’ts” be made part of the standard agency