Mahindra & Mahindra Financial Services Ltd On January 4 informed that the Reserve Bank of India (RBI) has lifted restrictions on the recovery of loans through third-party agents.
The decision, the company said, came after the submissions made by the financial firm and its commitment to strengthening its recovery practices and outsourcing arrangements. That apart, the company also committed to tightening the process of onboarding third-party agents and strengthening the accountability framework as per its Board approved action plan, M&M Financial said in a regulatory filing.
"The RBI, vide its letter dated 4th January 2023, has informed the Company of its decision to lift the aforementioned restrictions imposed on the Company with immediate effect," the release added.
In September, the RBI had asked M&M Financial services to immediately cease carrying out any recovery or repossession activity through outsourcing arrangements.
The company was allowed to carry out recovery or repossession activities, through its own employees.
