BENGALURU (Reuters) – Mahindra and Mahindra Financial Services said on Wednesday the Reserve Bank of India lifted curbs placed on the company last year that had prevented it from using third-party services for loan recovery.
The lifting of restrictions followed submissions made by the company and its pledge to strengthen recovery practices and outsourcing arrangements, while tightening the process of onboarding third-party agents and strengthening its accountability framework, the non-bank lender said in a regulatory filing.
The RBI action in September, which cited “material supervisory concerns”, had come after reports of a 27-year-old pregnant woman being crushed to death trying to stop a loan recovery agent, working on behalf of MMFSL, from seizing her father’s tractor over loan dues.
MMFSL shares had plunged over 20% following the order in September, before recouping those losses by December.
(Reporting by Chris Thomas in Bengaluru; Editing by Dhanya Ann Thoppil)
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