2. Background
Why Code of Conduct (CoC)
a set of rules that members of AN ORGANIZATION
or people with A particular job must follow
It applies for Bank staff or its agents who are not staff
The pharmaceutical industry's voluntary code of cond
uct says doctors may not be
given gifts in exchange for
an agreement to prescribe a product
Let’s explore what a code of conduct means and the
impact it can have on an organization.
3. Introduction
•CoC is the most common policy within an
organization.
•This policy lays out the company’s principles,
standards, and the moral and ethical expectations that
employees and third parties are held to as they
interact with the organization.
• It is an integral part of compliance efforts as it
provides documentation that an employee or third
party has violated company policy if illegal activity
arises.
4. CoC & DRAs
Code of conduct (CoC) is a kind of advisory to do
certain things /refrain from doing some other things.
These include dress code, verbal and written
communication rules to be followed.
In the discharge of duties, one obliged to follow the
Code of Conduct prescribed by Banks/NBFCs.
Code of conduct has to be regulation compliant.
Code of conduct along with duties laid down and
authority delegated need to be carefully noted for
strict compliance by the DRAs
5. Requirements for CoC
DRA has to confirm that he/she has read and
understood and agrees to abide by the CoC.
DRA has also to confirm that he/she has been
explained the duties and obligations in full.
In case of any violation, non-adherence to the CoC,
Bank shall be entitled to take such action against as
deemed appropriate.
6. CODE OF CONDUCT FOR RECOVERY
AGENTS (RAs)
Applicability
Code of Conduct for Recovery Agents (RAs) will be applicable to all RAs appointed
by the Bank.
The Code of Conduct shall form part of the agreement between the Bank and the
Recovery Agents.
RAs must agree to abide by this code prior to undertaking any recovery operation
on behalf of the Bank.
Any RA found violating this code may be blacklisted and such action taken will be
reported to concerned Business Group by the branches/operating units.
Business Group in turn will send this information to IBA on a monthly basis to
circulate the same to member Banks for action at their end.
7. When & where RAs may contact a
person on telephone
(a) Telephonic contact may normally be limited to between 08.00 hrs and 20.00 hrs
unless the special circumstances of the borrower’s business or occupation demands
otherwise.
However, it may be ensured that a borrower is contacted only when the call is not
expected to inconvenience him/her. Calls earlier or later than the prescribed hours
may be placed only under the following conditions:
(i) When the borrower has authorized to do so in writing or orally.
(ii) Due notice of recall of the loan has been served by the Bank on the borrower,
and appointment of recovery agent has been intimated to him, and the borrower
is intentionally avoiding calls of the RA.
(iii) Time and number of calls and contents of conversation will be documented.
8. When & where RAs may contact a
person on telephone- contd…
(b) The borrower would be contacted ordinarily at
the place of his choice and in the absence of any
specified place he will be contacted at his/her
residence in the place of employment/ business as
the case may be. (c) In appropriate occasions such
as bereavement in the family or such other
calamitous occasions would be avoided for making
calls/ visits to collect dues.
9. Can the borrower's Loan arrangement
be discussed with anybody else?
Normally RAs should maintain borrower's secrecy.
However, the matter may be discussed with his family
members if borrower’s response to notice of recall and
repeated calls made by RAs on the borrowers do not evoke
any response.
Family for this purpose will only be close and adult family
members and will include spouse, son (including legally
adopted son), unmarried daughter (including legally
adopted daughter), unmarried sister, father, mother,
daughter-in-law, grandson and grand- daughter.
10. Leaving messages and contacting
persons other than the borrower
Calls first must be placed to the borrower.
If the borrower is not available a message should
be left for the borrower to return the call or check
for a convenient time to call again. Message should
be left with his business associate or person(s)
representing him in the Bank and indicate that
"xxxxx (Name of the RA) representing xxxxx (Name
of the Bank) called and requested to call back at
xxxxxxxxxxx (phone No). The purpose of the call is
recovery of Bank's dues.”
11. Code adopted during the call
The RAs will identify himself/herself to the borrower and
will apprise him/her of the authority to represent.
State reason for call. Provide the borrower with all the
information regarding dues and necessary notice be given for
enabling discharge of dues.
Offer to call back, if the borrower is busy.
Talk in language which is most comfortable to the
borrower.
Keep conversation limited to business.
12. Code adopted during the call-
contd…
Reconfirm next call or next visit.
Provide contact numbers (for RAs as well as the Bank).
Reasonable notice will be given before repossession of
security as well as before its realization.
All assistance should be given to resolve disputes or
differences in a mutually acceptable and in an ordinary
manner, if any as regards dues.
Demeanor that will suggest criminal intimidation or threat
of violence would be scrupulously avoided.
13. Miscellaneous
Gifts or bribes
RAs will not accept any kind of gift or bribe
Other codes
1. RAs will not accept cash and recoveries will be deposited
in the Bank directly.
2. RAs must be appropriately dressed, decorum and decency
will be maintained.
3. RAs will furnish an undertaking
4. RAs would resort only the legally permissible activities
during the course of recovery.
14. Questions
1. Which of the followings codes has NOT been issued by BCSBI
A. Code of Bank’s commitment to customers
B. . Code of Bank’s commitment to Micro & Small Enterprises
C. Code against bribe
D. All of the above have been issues by BCSBI
2. which code applies for the telephoinic call
A. Talk in language which is most comfortable to the borrower
B The RAs will identify himself/herself to the borrower and will apprise him/her of the
authority to represent
C. Offer to call back, if the borrower is busy
D. All of the above
15. Questions
3. Which of the following is correct about CoC
A. All DRAs appointed by the Bank would have to abide by CoC
B. The CoC shall form part of the agreement between the Bank and the DRAs
C. DRAs must agree to abide by the Coc prior to undertaking any recovery operation on
behalf of the Bank.
D. All of the above
4. The following is as per the model code of conduct for DRAs
A. DRAs will not accept cash and recoveries will be deposited in the Bank directly.
B. DRAs must be appropriately dressed, decorum and decency will be maintained.
C. DRAs will furnish an undertaking
D. All of the above
