MUMBAI: The Reserve Bank of India (RBI) has fined Bajaj Finance Rs 2.5 crore for harassment and intimidation of customers by recovery agents during debt collection. The penalty comes at a time when law enforcement authorities are cracking down on app-based lenders for harassing borrowers, which had led to suicide in a couple of cases.
Bajaj Finance is the largest NBFC in the consumer finance segment and has been categorised as systemically important. The RBI had also issued a direction to the company to ensure compliance with its fair practices code — which bars strong-arm tactics by recovery agents — in letter and spirit.
The banking regulator said that there were also repeat complaints about recovery and collection methods adopted by Bajaj Finance.