FAIR PRACTICE CODE
- Complaints and Grievance Redressal
- Review and Amendments
The Reserve Bank of India (RBI), in exercise of powers conferred under Section 45 L of the Reserve Bank of India Act, 1934 ( Act 2 of 1934) and of all the powers enabling it in this behalf, vide its Circular no. DNBS (PD) CC No.80/03.10.042/2005-06 dated September 28th, 2006, prescribed guidelines on fair practices that are to be framed and approved by the Board of Directors of all Non- Banking Financial Companies. The RBI mandated that the fair practices code so framed and approved by the Board of Directors should be published and disseminated on the web-site of the company, if any, for the information of the public. White Stallion Consultants LLP (hereinafter referred to as “WSC”) hereby publishes the Fair Practice Code in pursuance to the said guidelines of the RBI as contained in the said Circular No. DNBS (PD) CC No.80/03.10.042/2005-06, as amended till date by the Circular No. DNBR (PD) CC.No.054/03.10.119/2015-16 dated 1st July 2015.
The purpose or objective of this Fair Practice Code are as follows:
- To abide by the best practice codes as formulated by the Reserve Bank of India, and to carry on the business in strict adherence to such practices;
- To ensure greater transparency and promote fair relationship with the customers;
- To ensure compliance of applicable laws and regulations in relation to dealing with customers and recovery of loans;
- To create and maintain adequate mechanisms for redressal of customer grievances;
This Fair Practice Code (FPC) shall be applicable in respect to the following broad aspects:
- Application of Loans and their processing
- All communications, procedures, and documents necessary for making loan applications will be provided to the borrowers at the outset, and all such communications and documents, including the loan application forms, KYC forms, and other documents shall be written in English
- The Loan Application form shall be prepared in a comprehensive manner, specifying in broad terms all the details of the transaction and all necessary information for the purpose of facilitating the Borrower to make informed decisions as well as to make meaningful comparisons with other NBFCs.
- Loan Appraisal and terms/conditions
- All loan applications will be considered keeping in mind the risk-based assessment procedures adopted by it.
- The approval of the loan applications shall be communicated to the borrowers by means of a Sanction Letter, specifying the terms and conditions of the loan. The Sanction letter will also contain the amount of Loan approved, as well as the annualized Interest Rates and the method of application thereof.
- The acceptance of the terms and conditions by the Borrower shall be preserved by WSC in its records.
- The penal interest charged for late repayment (if any) will be specified in the Sanction Letter and/or Loan Agreement.
- The Borrower will also be furnished, the Loan Agreement along with all the enclosures referred to in the Loan Agreement.
- Disbursement of loans including changes in terms and conditions
- In the event of any change in the loan details, including without limitation, any change in interest rates, disbursement schedule, service charges, or prepayment charges, the same shall be informed to the Borrower by a notice.
- Any such change will be enforced with a prospective effect only.
- Decision to recall / accelerate payment or performance under the agreement shall be in consonance with terms and conditions laid down in the Loan Agreement.
- WSC will not interfere in the affairs of the borrower except for the purposes provided in the terms and conditions of the loan agreement (unless information, not earlier disclosed by the borrower, has been noticed by WSC)
- In the matter of recovery of loans, measures will be taken so that undue harassment of the borrowers are avoided. The staffs or agents of WSC engaged for the purpose of recovery of loans will be advised to deal with customers in proper manner, and to refrain from such unfair recovery practices.
- Borrowers will not be discriminated on the grounds of gender, caste, or religion in its lending activities.
- Foreclosure charges/ pre-payment penalties on loans will not be charged from individual borrowers.
- In pursuance to RBI’s guidelines on Interests charged by NBFCs, an interest rate model will be adopted, taking into account relevant factors such as cost of funds, margin and risk premium for determining the rate of interest to be charged for loans and advances.
- The rate of interest will be disclosed to the borrower in the application form/loan agreement and the sanction letter, and will also be displayed on WSC’s website.
- The rate of interest communicated to the Borrower will be annualised rate.
- Following RBI’s Circular No. DNBS (PD) C.C.No.133/03.10.001/ 2008-09, the interest rates shall not be excessive or unreasonable.
- Privacy and Confidentiality
Grievance Redressal Mechanism
- WSC has set in place a robust Grievance Redressal Mechanism. Any borrower dissatisfied with the services may raise a complaint by escalating their grievances as per the Grievance redressal policy which can be accessed by following this link. https://thesahukar.com/customer-grievance-resressal-policy
- All complaints will be dealt with sincerity promptitude, and efforts will made to provide relief to the Borrowers within stipulated time.
- The complete Grievance Redressal Mechanism of WSC, along with the name and contact details of the Grievance Redressal Officer as well as the Officer in Charge of Regional Office of DNBS of RBI has been placed on the WSC’s website.
Review and Amendments
- The contents of this Fair Practice Code shall be placed before the Board of Directors periodically for the review of its compliance, as well as that of the functioning of grievance mechanism.
- The terms of this Fair Practice Code may be modified, changed, substituted, removed, suspended or otherwise updated by WSC from time to time. The date of any such change or update shall be mentioned at the beginning.