RBI directs Mahindra Finance to stop loan recovery via third party

NEW DELHI: The Reserve Bank of India (RBI) on Thursday barred Mahindra and Mahindra Financial Services (MMFSL) from using third-party services for loan recovery.
The central bank cited certain material supervisory concerns with regard to the management of its outsourcing activities as the reason being its directive.
However, the non-banking financial company (NBFC) has been permitted to carry out recovery or repossession activities through its own employees.


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