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It is heartening to note that the RBI, in its mid-term review of monetary policy, has indicated that it would not take a very strong view and even stringent action if banks’ agents use force to recover loan overdues. A private sector bank is running ads featuring a prominent film hero stating it will treat the customers with respect and that it has mandated that agents follow the code of conduct.

But the ground reality is that nobody can control the agents who, in their greed to earn hefty commissions, often use all methods, including force, to recover the dues. Dr Reddy has put it very nicely while replying to a question by a reporter whether he would consider a ban on recovery agents: “We are hoping that our threat would work”.

I hope the RBI will take its intent to the logical conclusion and severely reprimand the top officials of any banks that indulge in such practices, apart from any other stringent action. Kudos to Dr Reddy for the serious consideration he has bestowed on the matter.

K. Narayanan Hyderabad

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