Fair Practice Code

Fair Practice Code
Introduction

The Fair Practice Code (FPC) has been formulated by RADHAKRISHNA FINANCE PRIVATE LIMITED in response to the guidelines issued by Reserve Bank of India wide circular DNBS.CC.No.340/03.10.042/2013-14 dated July 1, 2013, to ensure better service quality and bring in transparency in its loan process and also to provide an effective overview of practices followed by the company in respect of financial services offered to the customers. The redrafted FPC also aims in enhancing customer satisfaction and minimizing customer complaints.

This Code has been drawn up to:

i. Provide to the customers an overview of policies and practices followed by the Company in respect of financial facilities and services offered by the Company to its Customers;

ii. Enable customers to take informed decision about the financial facilities and services offered by the Company;

iii. Promote good, fair, transparent and trustworthy practices by setting minimum standards in dealings with customers;

iv. Enable customers to have better understanding of what they can reasonably expect of the services offered by the Company;

v. Reckon with market forces, through competition and strive to achieve higher operating standards;

vi. Foster fair and cordial relationship between the customers and the Company.

Loan Application and Processing of Gold Loans & Property Loans

1. All communications to the borrower shall be in the vernacular language or a language as understood by the borrower

2. An acknowledgment for receipt of duly completed loan application forms will be given to the customer in all cases. As a matter of policy and customer service, loan applications are sanctioned / rejected immediately. Disbursement of the loan and acceptance of security will be carried out nearly simultaneously.

3. The application form will clearly state the information to be provided by the customer to fulfill the KYC norms and to comply with legal and regulatory requirements.

Terms and Conditions

i. The company shall disclose all the relevant information regarding the loan/product such as eligible loan amount, Interest rate, charges, penal/overdue interest and method of interest calculation etc of the loan to enable the customer to take an informed decision.

ii. The company shall ensure that a loan sanction letter (Pawn Ticket) is given to the customer containing all the terms and conditions governing the loan facility in the local language or other language understood by the customer. The loan sanction letter will also mention the loan amount, number ,interest rate charges, loan processing fee if any etc. The loan sanction letters will bear the signature of the authorized official of the company will also gave a token receipt to the security (gold) pledged at the branch by the customer.

iii. There will be notices served to the borrower in the vernacular language as understood by the borrower of any change in the terms and conditions including disbursement schedule, interest rates, service charges, prepayment charges etc.

iv. The company shall release all the securities, on getting the repayment of its full dues or on realization of the outstanding amount of loan subject to any legitimate right or lien to any other claim the company may have against its borrowers. It has such rights to set off and if is to be exercised, then the borrower shall be given a notice about the same with full particulars about the remaining claims and conditions under which the company is entitled to retain the securities till the relevant claim is settled/paid.

Policy on KYC, Appraisal, Insurance, Storage of Securities, Auction etc

The Company shall put in place a policy duly approved by the Board covering the following aspects:

i. Adequate steps to ensure that the KYC guidelines stipulated by RBI are complied with and to ensure that adequate due diligence is carried out on the customer before extending any loan.

ii. Proper appraisal procedure for jewellery accepted as collateral security.

iii. Declaration shall be obtained from the borrower confirming ownership of gold jewellery.

iv. All branches shall have proper storage facility of either Strong Rooms or Safes conforming to ISI Standards of approved make to store the jewellery in safe custody. The keys to the strong room/safe shall be held separately by two officials and the operations thereof shall be done jointly. The staff shall be imparted training on a continuous basis to ensure that the guidelines covering security issues are strictly adhered to. The gold items shall be periodically inspected by the internal auditors to ensure quality, quantity and proper storage

v. The jewellery accepted as collateral security shall be appropriately insured. The auction procedure in case of non – repayment shall be transparent. Prior notice to the borrower shall be given before the auction and there shall not be any conflict of interest. The auction process shall ensure that an arms length relationship in all transactions during the auction is maintained including with group companies and related entities. The details regarding procedure for auction shall be disclosed in the loan document for availing the loan. The auction will be only through auctioneers approved by the Board and the Company shall not participate in the auction. The auction shall be announced to the public by issuing advertisements in at least two newspapers, one in vernacular language and the other in a national daily newspaper.

vi. Any fraud in the functioning of the Company shall be enquired into by the appropriate authority and suitable punitive measure shall be taken by the appropriate disciplinary authority. Any review of the decision of the disciplinary authority shall be carried out by the Managing Director

Grievance Redressal Mechanism

The company will take necessary steps for minimizing the customer complaints/ grievances. The company will facilitate the customer to pay the whole or part of the dues at any of the branches of the company subject to the condition that delivery of the pledged security shall be made only at the branch where loan was originally disbursed. All customer grievances shall be heard and disposed by the branch manager. All the disputes arising out of the decisions of lending institutions functionaries are heard and disposed of at least at the next higher level. ie, Branch Manager->Regional Manager-> Zonal Manager and Grievance Redressal Forum. Contact numbers of Customer Redressal officer will be displayed at the branch.

General

I. The company will not interfere in the affairs of the customers except for the purposes mentioned in the terms and conditions of the loan agreement.

II. In the matter of recovery, the company will not resort to any type of undue harassment viz; persistently bothering the borrowers at odd hours, use of muscular power for recovery of loans etc. Company shall train all staff to deal with customers in a proper manner.

III. The company shall state the repossession clause in the loan agreement with the borrower which shall contain provisions regarding notice period before taking possession, circumstances under which the notice period can be waived, procedure for taking possession of the security , provision regarding final chance to be given to the borrower for repayment of the loan before auction/sale of security, procedure for giving repossession to the borrower and the procedure for sale/auction of the property.

IV. The company shall treat all personal information of its borrowers as private and confidential and will not reveal any information to any other entity other than for regulatory/statutory matters.

The company shall put the above Fair Practice Code on its website for information. The company would also review and revive the code, as may be required periodically based on its own experience and fresh guidelines, if any, to be issued by RBI in this regard.

Grievance Redressal Officer

As per Reserve Bank of India, Fair practice Code , We give below the complete address with Telephone Number of the Nodal Officer of the Grievance Redressal Forum:-

Mr. Sudheer.V.C
Accounts In Charge
M/s Radhakrishna Finance Ltd
1st Floor, Sreepadmam Arcade
Above ICICI Bank, West Nada
Guruvayur-680101
Mobile no: 8589997280

Public are free to contact the above Person in case of any issues.