RBI’s action against Mahindra Finance, ban on keeping third party recovery agent

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RBI-mahindra finance

New Delhi: Recently, a case of a handicapped farmer’s daughter was allegedly crushed by a tractor by the recovery agent of Mahindra Finance in Hazaribagh. Now the Reserve Bank of India (RBI) has shown strictness against Mahindra and Mahindra Financial Services Limited. The RBI on Thursday directed Mahindra & Mahindra Financial Services Ltd to immediately stop any recovery through outsourcing agents. The central bank has directed that the financial service provider of this company can no longer use external recovery agents.

What is the matter?
In Hazaribagh, Jharkhand, the finance company personnel who came to pick up the farmer’s tractor forcibly after not paying the tractor installment on time, crushed the pregnant daughter of a differently-abled farmer with a vehicle, which led to her death on the spot. Divyang farmer Mithilesh Mehta had taken a loan from Mahindra Finance for a tractor, the installment of which he could not repay on time.

Anand Mahindra expressed grief
Anand Mahindra, while retweeting the tweet of Mahindra Finance CEO and MD Anish Shah, expressed grief over the Hazaribagh accident and expressed his condolences to the victim’s family.

RBI-mahindra finance

Expressing grief over the accident, Anand Mahindra had also talked about reviewing the third-party collection in the matter. The veteran businessman had assured the cooperation of the police in the investigation.

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