Saturday Brain Storming Thought (211) 24/02/2024
DEBT RECOVERY AGENT
Debt Recovery Agent is the person who is appointed by banks and lawful debt collection agencies to act as their agents
Debt Recovery Agent are people who pursue the debt owned by customers and businesses for banks or financial institutions
Most of these Recovery Agents acts like officials to collect the dues from the customers for a fee or a percentage of the total money owed
RBI guidelines for Debt Recovery Agents
Debt Recovery Agents are legally bound by these guidelines and cannot harass borrowers in any way
1) Banks must have a diligence process in place when it comes to engaging with debt recovery agents and are responsible for all complaints filed against them
2) Borrowers must be noticed first about the details of the recovery agency
3) The agent must also carry the authorization letter and copy of the banks notice when meeting the defaulter
4) In case a complaint has been lodged by the borrower, banks are not allowed to forward the respective case to a recovery agency until the said complaint has been solved/disposed of
5) However, this is nullified if the bank is convinced with proof that the complaints are frivolous or pointless
6) The bank must also ensure that the borrowers grievances regarding the recovery process are addressed appropriately
Eligibility for Debt Recovery Agent (DRA) Certificate
1) Any individual who would like to make a career as a DRA for a bank
2) Educational qualification for DRA – minimum SSC passed or above
3) Age above 18 years on the date of application
4) Training taken – Apprenticeship training scheme under Apprentice Act 1961
5) 100 hours training for candidates who have passed 10+2
6) 50 hours training for candidates with higher qualifications
Documents required for DRA exam
Online application form on the IIBF website
Any of the following
1) Aadhar card
2) Pan card
3) Election voters ID
4) Driving licence
5) An employer – issued photo identity card
DRA exam syllabus
Modula A
1) Basics of banking
2) principles of banking
3) structure and function of banking
4) retail banking
5) e-banking
6) KYC norms
7) outline of various banking products
8) home loan
9) consumer loan
10) credit card
11) agriculture credit products
Module B
1) soft skills like communication skills, telephone etiquette
2) negotiation and persuasive skills
3) personal etiquette
4) analytical ability
5) code of ethics
6) RBI guidelines
7) banking guidelines
8) case studies
Buckets
When collection is outsourced, debts are categorised according to buckets
1) collection methods are based upon the type of debt and the debtors past payment history
2) debts are divided into soft and hard buckets
3) soft bucket items include most unsecured debts
Asset security can serve as one of the most effective recovery tools, in case the debt falls due to any unavoidable reasons
Time limit for DRA
Debt Recovery Agents are barred from calling the borrower/guarantor before 8 am and after 7 pm, for recovery of overdue loans
Tips to become successful Debt Recovery Agent
1) improve your listening skills
2) manage emotions
3) take reasonable time
4) Do your research
5) use technology and productivity tools
6) remain realistic in all ways and always
7) follow a clear and concise approach
8) be persistent
9) maintain professionalism
10) understand laws and regulations
11) negotiate clearly
12) ask for comments about repayment deal
13) confirm the deal in writing
14) explain the consequences
15) regular and consistent followup
16) document everything and maintain regular updates
17) help your colleagues
COMPILED BY:-
Er. Avinash Kulkarni
9822011051
Chartered Engineer, Govt Regd Valuer, IBBI Regd Valuer
