1. INTRODUCTION
This Recovery Policy (“Policy”) lays down the principles, standards, and procedures to be followed by the Company in the recovery of dues from its borrowers, in compliance with applicable laws, regulatory requirements, and guidelines issued by the Reserve Bank of India (RBI).
The Company is committed to ensuring that all recovery activities are carried out in a fair, transparent, and responsible manner, with due regard to the dignity, privacy, and rights of borrowers. The Policy emphasizes adherence to ethical practices and prohibits any form of harassment, coercion, or undue influence during the recovery process.
At the same time, the Company shall adopt appropriate and legally permissible measures to ensure timely recovery of its dues, in line with its contractual rights and regulatory obligations.
This Policy shall be read in conjunction with the Company’s Fair Practices Code and other applicable internal policies.
This Policy is framed in accordance with applicable provisions of the Reserve Bank of India (RBI) regulations and guidelines, including the Fair Practices Code for NBFCs, RBI Digital Lending Guidelines, 2022, guidelines on engagement of recovery agents, and outsourcing of financial services, as amended from time to time.
2. OBJECTIVE
The objective of this Policy is to:
- Ensure recovery of dues in a lawful, transparent, and ethical manner in accordance with applicable laws and regulatory requirements
- Safeguard the dignity, privacy, and rights of borrowers during the recovery process
- Prevent any form of harassment, coercion, or unfair recovery practices
- Ensure adherence to the guidelines issued by the Reserve Bank of India (RBI) and the Company’s Fair Practices Code
- Promote responsible and customer-centric recovery mechanisms while protecting the Company’s legitimate financial interests
3. DEFINITIONS
For the purpose of this Policy, unless the context otherwise requires, the following terms shall have the meanings assigned to them below:
- “Borrower” means any individual or entity who has availed of a loan or credit facility from the Company and includes co-borrowers, guarantors, and legal heirs, wherever applicable.
- “Company” means Viable Finance and Housing Private Limited, a Non-Banking Financial Company (NBFC) registered with the Reserve Bank of India.
- “Default” means failure by the Borrower to repay any amount due, including principal, interest, charges, or any other dues, on or before the due date as per the terms of the loan agreement.
- “Recovery” means the process undertaken by the Company to collect overdue amounts from the Borrower through lawful, ethical, and permissible means in accordance with applicable laws and regulatory guidelines.
- “Recovery Agent” means any individual, agency, or service provider engaged by the Company, either directly or through outsourcing arrangements, for the purpose of collection and recovery of dues from Borrowers.
- “Communication Channels” means the modes of interaction with the Borrower, including but not limited to telephone calls, SMS, emails, written correspondence, digital platforms, and physical visits, as permitted under applicable laws and with the Borrower’s consent.
- “Permissible Hours” means the time period between 8:00 AM and 7:00 PM or such other time as may be expressly agreed with the Borrower, in accordance with applicable regulatory guidelines.
- “Third Party” means any person other than the Borrower and the Company, including but not limited to relatives, friends, colleagues, employers, or any other external individual or entity.
- “Applicable Laws” means all laws, rules, regulations, circulars, notifications, and guidelines issued by competent authorities, including but not limited to the Reserve Bank of India, as amended from time to time.
- “Regulatory Guidelines” means the directions, circulars, and advisories issued by the Reserve Bank of India relating to Fair Practices Code, recovery of loans, engagement of recovery agents, outsourcing of financial services, and digital lending.
- “Grievance Redressal Mechanism” means the system established by the Company for receiving, addressing, and resolving complaints or concerns raised by Borrowers in accordance with applicable regulatory requirements.
4. APPLICABILITY
This Policy shall apply to all recovery activities undertaken by the Company in relation to its lending operations.
It shall be applicable to:
- All employees, officers, and internal recovery teams of the Company involved in recovery functions
- External recovery agents, agencies, and service providers engaged by the Company for collection and recovery of dues
- Any other persons or entities acting on behalf of the Company in connection with recovery activities
All such persons and entities shall be required to adhere strictly to the provisions of this Policy, as well as applicable laws and the guidelines issued by the Reserve Bank of India (RBI).
This Policy shall be hosted on the Company’s official website and made accessible to borrowers and stakeholders.
5. GUIDING PRINCIPLES
The Company shall adhere to the following guiding principles in all recovery-related activities:
- Recovery shall be conducted in a fair, respectful, and dignified manner, ensuring that borrowers are treated with courtesy at all times
- No borrower shall be subjected to any form of harassment, coercion, intimidation, or undue influence during the recovery process
- All communications with borrowers shall be professional, polite, transparent, and non-threatening in nature
- Recovery practices shall strictly comply with applicable laws, contractual terms, and the applicable RBI regulations and guidelines
- The privacy and confidentiality of borrower information shall be maintained at all times during recovery interactions
6. RECOVERY PROCESS
6.1 Pre-Default Communication
- The Company shall adopt a proactive approach by reminding borrowers of upcoming payment obligations through appropriate communication channels such as calls, SMS, emails, or written communication
- Payment reminders shall be sent prior to the due date at reasonable intervals
- All communications shall clearly specify the due amount, due date, and available payment methods
6.2 Post-Default Follow-Up
- In the event of default, the Company shall initiate follow-up with the borrower through permissible communication channels in a timely and professional manner
- The Company shall make reasonable efforts to understand the reasons for default and assess the borrower’s repayment capacity
- The Company shall adopt a structured and progressive escalation approach for recovery in cases of continued default, ensuring that recovery efforts remain proportionate, lawful, and non-coercive. The escalation framework shall broadly include the following stages:
- Soft Reminder Stage: Initial follow-ups through calls, SMS, email, or digital communication immediately after the due date, reminding the borrower of the overdue amount and requesting payment.
- Intensive Follow-Up Stage: In case of non-payment, increased frequency of communication through permissible channels, including calls and messages, while maintaining professionalism and adherence to prescribed timelines.
- Field Visit Stage: Where necessary, authorized representatives or recovery agents may conduct field visits to the borrower’s registered address, strictly in compliance with this Policy, with proper identification and without causing harassment or public embarrassment.
- Pre-Legal Intimation: Issuance of formal written communication informing the borrower of continued default and the potential initiation of legal proceedings in accordance with applicable laws.
- Legal Action Stage: Initiation of appropriate legal remedies for recovery of dues, including but not limited to issuance of legal notice or institution of proceedings before competent authorities, in accordance with applicable laws and contractual terms. All legal actions shall be initiated through duly authorized legal channels and in accordance with applicable jurisdiction, contractual terms, and governing laws.
- The progression through the above stages shall be based on the duration of default, borrower response, and internal risk assessment, and shall at all times remain compliant with applicable RBI guidelines and laws.
- Wherever feasible, the Company may consider providing suitable repayment options, restructuring, or rescheduling of dues in accordance with its internal policies and applicable regulatory guidelines
- All recovery interactions shall be documented and conducted in compliance with applicable laws and the applicable RBI regulations and guidelines
- The Company shall maintain proper records of all recovery communications, including call logs, notices, and field visit reports, for such period as may be required under applicable laws and internal policies
- The Company shall ensure that frequency and persistence of recovery communication remain reasonable, proportionate, and not excessive, and internal controls shall be maintained to prevent borrower harassment
6.3 Engagement of Recovery Agents
- The Company may engage recovery agents or agencies, subject to proper due diligence and background verification
- All recovery agents shall be formally authorized and adequately trained on applicable laws, applicable RBI regulations and guidelines, and the Company’s Code of Conduct for recovery
- Recovery agents shall carry proper identification and authorization letters issued by the Company and shall produce the same upon request by the borrower
- The Company shall ensure that recovery agents adhere strictly to this Policy and shall remain fully responsible and accountable for their actions
- A list of authorized recovery agents shall be maintained and made available as required under regulatory guidelines
- The Company shall ensure that all recovery agents comply with the applicable RBI regulations, guidelines, and prescribed codes of conduct, including those relating to outsourcing of financial services and engagement of recovery agents
- Recovery agents shall operate strictly in accordance with the Board-approved Code of Conduct and Fair Practices Code of the Company
7. CODE OF CONDUCT FOR RECOVERY
7.1 Interaction with Borrowers
- All interactions with borrowers shall be conducted in a courteous, professional, and respectful manner.
- All communications with the borrower shall be undertaken strictly through lawful means and only using the contact details and references expressly provided by the borrower with prior consent for such contact at the time of loan origination or subsequently updated through authorized channels.
- All borrower communications shall, to the extent feasible, be conducted through Company-approved systems and channels that are capable of being recorded, logged, or otherwise auditable.
- Wherever calls are recorded, the borrower shall be informed of such recording in accordance with applicable laws and regulatory requirements.
- The Company and its recovery agents shall not access, retrieve, or utilize contact information from any unauthorized sources, including but not limited to mobile phone directories, social networks, or indirect third-party sources, for the purpose of recovery.
- No contact shall be made with any third party, including relatives, friends, colleagues, or employers of the borrower, except where such contact details have been expressly provided by the borrower with prior consent for such contact and such communication is carried out strictly in accordance with applicable laws, regulatory guidelines, and with due regard to borrower privacy.
- Borrowers shall ordinarily be contacted between 8:00 AM and 7:00 PM, or such other time as may be expressly agreed with the borrower.
- The identity of the Company and its authorized representative shall be clearly disclosed at the beginning of every interaction.
- The privacy and dignity of the borrower shall be strictly respected at all times.
- Communication shall be made in a manner that does not cause inconvenience, harassment, or undue pressure to the borrower.
- Borrowers shall be made aware of their rights and the available grievance redressal mechanisms during recovery interactions, wherever appropriate.
- The Company shall respect borrower communication preferences, including requests for specific modes or timing of contact, to the extent feasible and permissible.
- The Code of Conduct for Recovery shall be a Board-approved document and shall be binding on all employees, recovery personnel, and agents engaged by the Company
7.2 Prohibited Practices
The Company and its recovery agents shall strictly refrain from engaging in any of the following practices:
- Use of abusive, offensive, or threatening language
- Any form of physical or verbal intimidation, coercion, or harassment
- Contacting borrowers at inappropriate or odd hours in violation of prescribed timelines
- Making false, misleading, or deceptive representations
- Contacting or disclosing borrower information to unrelated third parties without prior consent, except as permitted under applicable laws
- Any action that may harm the reputation, dignity, or privacy of the borrower
- Visiting or approaching the borrower in a manner that may result in public embarrassment or humiliation
- Engaging in excessive, unreasonable, or unduly frequent communication with the borrower with the intent to harass, intimidate, or coerce repayment.
- Use of automated calling systems, bulk messaging tools, or repeated digital communication in a manner that may amount to harassment, intimidation, or undue pressure
- However, reasonable follow-ups, including multiple calls, messages, or reminders, may be undertaken in a professional manner for legitimate recovery purposes, particularly in cases of continued default, provided such communication remains non-threatening and within permissible hours and regulatory norms.
- Threatening the borrower with arrest, criminal action, or consequences that are not legally tenable, or misrepresenting legal processes to coerce repayment
8. GRIEVANCE REDRESSAL
- The Company shall establish an appropriate grievance redressal mechanism to address complaints and concerns raised by borrowers, including those relating to recovery practices.
- Borrowers may lodge complaints through designated communication channels as notified by the Company from time to time.
- All complaints shall be acknowledged promptly and resolved in a fair and transparent manner within the timelines prescribed under applicable RBI guidelines, as amended from time to time.
- The contact details of the Grievance Redressal Officer shall be clearly communicated to borrowers and made readily accessible through the Company’s website and other official communication channels.
- In case the borrower is not satisfied with the resolution provided by the Company, they may escalate the matter in accordance with the applicable regulatory framework.
- If the complaint is not resolved to the satisfaction of the borrower within the prescribed timelines, the borrower may approach the Reserve Bank of India under the Integrated Ombudsman Scheme, as applicable.
- Detailed contact information of the Grievance Redressal Officer is provided in the Company’s Grievance Redressal Policy and is also available on the Company’s official website.
9. TRAINING AND MONITORING
- The Company shall ensure that all recovery staff and authorized agents are adequately trained on this Policy, applicable laws, and the applicable RBI regulations and guidelines, as amended from time to time.
- Such training shall include, inter alia, aspects relating to fair practices, borrower interaction, data privacy, grievance handling, and ethical recovery methods.
- The Company shall implement appropriate monitoring and supervision mechanisms to ensure adherence to this Policy and applicable regulatory requirements.
- Periodic reviews, audits, and performance evaluations of recovery personnel and agents shall be conducted to assess compliance and identify areas for improvement.
- Any violation or non-compliance with this Policy or regulatory guidelines shall be viewed seriously and may result in appropriate disciplinary action, including termination of engagement, as deemed necessary.
- Accountability shall be fixed for non-compliance, and responsibility shall be clearly assigned to concerned personnel for adherence to this Policy.
- The Company shall maintain audit trails of all recovery interactions, including call recordings (where applicable), digital logs, and field visit reports, to ensure transparency, accountability, and regulatory compliance.
- The Company shall ensure that no recovery practices violate the provisions of applicable laws, including but not limited to the Indian Penal Code, Information Technology Act, and guidelines issued by the Reserve Bank of India.
10. CONFIDENTIALITY
All information relating to borrowers shall be treated as strictly confidential and shall be collected, used, processed, and disclosed only for legitimate recovery purposes, in accordance with applicable laws, including data protection and privacy laws in force in India, regulatory guidelines, and the Company’s data protection and privacy policies.
The Company shall ensure that such information is accessed only by authorized personnel and is not disclosed to any third party without the borrower’s consent, except where such disclosure is required under applicable law or permitted by regulatory authorities.
11. GOVERNANCE AND REVIEW
This Policy shall be subject to periodic review to ensure its continued relevance and compliance with applicable laws, regulatory requirements, and guidelines issued by the Reserve Bank of India (RBI) from time to time.
Any revisions or modifications to this Policy shall be placed before and approved by the Board of Directors or such other competent authority as may be authorized in this regard.
The Company shall ensure that the Policy is effectively implemented across all relevant functions and that necessary controls and oversight mechanisms are in place to monitor compliance.
The Board of Directors shall be responsible for overseeing the implementation of this Policy and ensuring that adequate systems, controls, and review mechanisms are in place for effective compliance.
The Company shall ensure that periodic reports on recovery activities, including recovery performance, borrower complaints, grievance trends, and conduct of recovery personnel and agents, are placed before the Board of Directors or a duly constituted committee thereof at such intervals as may be determined by the Company, to enable effective oversight and regulatory compliance.
12. CONSENT AND ACCEPTANCE
By availing of the Company’s loan facilities, the borrower acknowledges having been informed of this Policy and expressly agrees to the recovery processes and practices outlined herein, subject to applicable laws, regulatory requirements, and applicable RBI regulations and guidelines, as amended from time to time.
Such consent shall be obtained through explicit acceptance at the time of loan onboarding through digital or physical means, as applicable.
Such consent shall be deemed to constitute acceptance of the terms of this Policy, provided that nothing contained herein shall override or prejudice the rights and protections available to the borrower under applicable laws and regulations.
This Policy is framed in alignment with and shall be interpreted in accordance with applicable RBI regulations and guidelines on Fair Practices Code, Recovery Agents, and Outsourcing of Financial Services, as amended from time to time.