This has reference to RBI MASTER Circular No. RBI/2015-16/16 DNBR (PD) CC.No.054/03.10.119/2015-16 dated 1st July 2015, wherein Reserve Bank of India (RBI) has summarized the guidelines on Fair Practices Code for NBFCs.
The Fair Practices Code, as mentioned herein below, is in conformity with these Guidelines on Fair Practices Code for NBFCs as contained in the aforesaid RBI Circular. This sets minimum Fair Practice standards for the Company to follow when dealing with the customers. It provides information to customers and explains how the Company is expected to deal with them on a day to day basis.
This policy applies to all customers including those with any complaints / enquiries as posted on social / any other media and we encourage all customers to reach out to the below platforms as required.
Ensuring fair practices while dealing with customers by developing, training and implementation of Fair practices code.
Greater transparency enabling customers in having a better understanding of the product and taking informed decisions.
Building customer confidence in the company through a mechanism for constantly receiving feedback/grievances from customers.
The Company offers financial product of short and medium term financing with or without the security of residential or commercial or vacant land property or any other adequate security primarily to the small and medium enterprises engaged in the business of manufacturing, services and agriculture, self employed professionals , salaried employees, traders, retailers, businessmen, agents, distributors, companies, corporate and individuals for their requirement relating to expansion of business, working capital needs and or personal needs.
All communications to the borrower are in the vernacular language or a language as understood by the borrower.
The ‘Application Form with checklist of documents’ of PRATAM (PFSL) will include all information and documents that is required to be submitted by the Borrower. Necessary information will be provided by PFSLL to facilitate the Borrower in making a meaningful comparison with similar terms and conditions offered by other Non-Banking Finance Companies (NBFCs) and taking an informed decision based on the aforesaid comparison.
The ‘Application Form with checklist of documents’ of PFSL may also indicate the list of documents required to be submitted by the Borrowers along with the Application form.
PFSL has a mechanism of giving an acknowledgement for receipt of Application form to its Borrower for availing loans. PFSL would inform the Borrower about its decision within reasonable period of time from the date of receipt of all the required information and documents.
PFSL shall convey in writing to the Borrower by way of a sanction letter or otherwise, the amount of loan / limit sanctioned along with all the terms and conditions including annualized rate of interest and method of application thereof and shall keep the acceptance of these terms and conditions by the borrower on PFSL’s record.
Any clause relating to penal interest charged for late repayment will be specified in bold in the Loan Agreement.
PFSL at the time of sanction / disbursements of loans will furnish a copy of loan agreement to the borrower
PFSL ensures to convey and explain in detail all the terms and conditions of Sanction letter, agreement etc., in the language preferred by the customer.
Through its published website or as appropriate if specific to a customer, PFSL will give Notice to its Borrower(s), of any change in the terms and conditions of the sanction. PFSL will also ensure that changes in interest rates, fees and charges are effected only prospectively.
Decision to recall/ accelerate payment or performance under the Agreement will be in consonance with the respective loan Agreement.
PFSL at the time of sanction / disbursements of loans will furnish a copy of loan agreement to the borrower
PFSL will release all securities of its Borrower only on repayment of all dues by such Borrower, or only on realization of the outstanding amount of the Borrower’s availed limit, subject to any legitimate right or lien for any other claim which PFSL may have against its Borrower. If such right of set off is to be exercised, the Borrower will be given notice about the same with full particulars about the remaining claims and conditions under which PFSL will be entitled to retain the securities till the relevant claim is settled or paid by the Borrower. Due No- objection certificate will be issued to the customer on fulfillment of said terms within 15 workings days of completion of formalities.
PFSL will refrain from interference in the affairs of its Borrower except for the purposes provided in the terms and conditions of the respective loan agreement(unless new information, not earlier disclosed by the Borrower, which may come to the notice of PFSL).
In case of receipt of request from the Borrower for transfer of Borrower account, the consent or otherwise i.e. objection of PFSL, if any, is generally conveyed to such Borrower within 21 days from the date of receipt of the Borrower’s request. Such transfer will be as per transparent contractual terms in consonance with all the applicable laws.
In the matter of recovery of outstanding dues of its Borrower, PFSL does not resort to undue harassment viz. persistently bothering the borrowers at odd hours, use of muscle power for recovery of loans/dues, etc. Training will be imparted to ensure that staff is adequately trained to deal with customers in an appropriate manner.
PFSL will not charge foreclosure charges/ pre-payment penalties on all floating rate term loans sanctioned to individual borrowers.
The Board of Directors of PFSL have laid down the grievance Redressal mechanism within the organization, which ensures all disputes arising out of the decisions of PFSL's functionaries are heard and disposed of at least at the next higher level. The aforesaid policy will be reviewed periodically /revised as and when there are any new changes incorporated by PFSL in handling complaints / grievances of the customer which includes introduction of new grievance channels, if any.
In the present competitive scenario, excellent customer service is an important tool for sustained business growth. Customer complaints are part of the business life in any corporate entity. At PFSL, customer service and satisfaction are our prime focus. We believe that providing prompt and efficient service is essential not only to attract new customers, but also to retain existing ones. PFSL has come up with a lot of initiatives that are oriented towards providing a better customer experience and an efficient complaints Redressal mechanism with a view to providing enhanced experience to our customers.
In order to make PFSL’s Redressal mechanism more meaningful and effective, a structured system has been built. This system would ensure that the Redressal sought is just and fair and is within the given frame- work of rules and regulation.
A. Stage-1 - Grievance Redressal at Branch level
The customer may register his/her query/ complaint to PFSL which shall be addressed by the Branch Manager by email or through phone. The customer can also personally visit the branch office and make the complaint in writing to the Branch Manager in the complaint register available in the branch. On registering the complaint customer shall be provided a Reference number for the complaint lodged with PFSL for future correspondence.
B. Stage-2 - Grievance Redressal framework at Head Office
If the customer is not satisfied with resolution provided by the local branch office, the customer may provide feedback or send in their complaint using the following channels between 9:00 am and 5.00 pm, from Monday to Friday (except on national holidays).
C. Stage-3 - Escalation
In case the complaint is not resolved within the given time or if the customer is not satisfied with the solution provided, the customer can approach the Complaints Redressal Officer.
The name and contact details of the Complaint Redressal Officer is as follows:
We assure a response to letters / emails received through this channel within 5 working days at every stage. If the complaint/dispute is not redressed within a period of one month, the customer may appeal to Officer-in-Charge of the Regional Office of Department of Non Banking Supervision of RBI under whose jurisdiction the Registered Office of the PFSL falls.
F.Ⅱ Mandatory display requirements.
PFSL has the following in all our Regional Offices and branches:
Appropriate arrangement for receiving complaints and suggestions.
Display of the name, address and contact number of the Complaint Redressal Officer. The process of the complaints Redressal unit will ensure closure of all complaints to the customers’ satisfaction.
They will ensure that the complaint is escalated to the appropriate levels in case it is not possible to resolve at his/her level. Whilst the ultimate endeavor is to ensure we reach a situation where our customers don’t have to complain to senior management to get an effective Redressal, we have put in a robust mechanism to handle these complaints, review them from a point of view of understanding reasons for the complaint and for the escalation and working on prevention of recurrence thereof.
F.Ⅲ Time frame.
To register complaints, the customers may use any of the channels mentioned above (refer point (a) on Internal Machinery to handle the customer complaints).
If the complaint has been received in writing, PFSL will endeavor to send an acknowledgement / response within a week. Once the matter is examined, PFSL endeavors to either send a final response to the customer or an intimation seeking more time within one month upon receipt of complaint.
Complaints that are received at our end will be seen in the right perspective and would be analyzed from all possible angles. The communication of PFSL’s stand on any issue will be provided to the customers. Complaints that require some time for examination of issues involved will be acknowledged promptly.
G. Regulation of Excessive Interest Charged
The Company has laid down appropriate internal principles and procedures in determining interest rates and processing and other charges.
The Company has adopted an interest rate model taking into account cost of funds, margin and risk premium for determining rate of interest to be charged for loans and advances.
The rate of interest to be charged depends much upon the gradation of the risk of borrower viz. the financial strength, business, regulatory environment affecting the business, competition, past history of the borrower etc.
The rate of interest will be annualized so that the borrower is aware of the exact rates that would be charged to the account.