1. P RESENTATION ON M ODEL P OLICIES OF IBA ON G RIEVANCE R EDRESSAL M ECHANISM & C OLLECTION OF DUES & R EPOSSESSION OF S ECURITY

2. M ODEL P OLICY F OR G RIEVANCE R EDRESSAL IN B ANKS The Policy for grievance redressal should provide for:  Aims and Objectives of the Policy;  Machinery for handling Customer complaints/ grievances;  Mandatory display requirements;  The level of officials responsible for resolution of Grievances;  Specific time frame to be set up for handling complaints;  Personal interaction with customers by ban k’s staff; and  Sensitizing operating staff on handling complaints.

3. A IMS AND O BJECTIVES OF THE P OLICY Aims at minimizing instances of customer complaints and grievances. Ensure prompt redressal of customer complaints and review mechanism. The policy should follow the undernoted principles:  Customers should be treated with courtesy and fairly at all times.  Customers should be fully informed of avenues to escalate their complaints/grievances within the organization and their rights to alternative remedy.  To treat all complaints efficiently and fairly.  Employees should work in good faith and without prejudice to the interest of the customer.

4. M ACHINERY FOR H ANDLING C USTOMER C OMPLAINTS / G RIEVANCES Customer Service Committee of the Board - formulate Comprehensive Deposit Policy. Standing Committee on Customer Service - Chaired by the Managing Director/ED - evaluate feed-back on quality of customer service; ensure compliance of all regulatory instructions regarding customer service; consider unresolved complaints/grievances; submit report on its performance to the customer service committee of the board at quarterly intervals. Nodal Officer and other designated officials to handle complaints and grievances - responsible for the implementation of customer service and complaint handling for the entire bank.

5. M ANDATORY D ISPLAY R EQUIREMENTS Appropriate arrangement for receiving complaints and suggestion. Name, address and contact number of Nodal Officer(s). Contact details of Banking Ombudsman of the area. Code of bank’s commitments to customers/Fair Practice code.

6. T HE LEVEL OF OFFICIALS R ESPONSIBLE FOR RESOLUTION OF G RIEVANCES Branch Manager is responsible for the resolution of complaints/grievances. Branch Manager to be responsible for ensuring closure of all complaints. If Branch Manager cannot resolve the problem, he can refer it to Regional/ Zonal office. Regional/ Zonal office can further refer the matter to the Nodal Officer.

7. S PECIFIC T IME F RAME TO BE S ET UP FOR H ANDLING C OMPLAINTS Complaints to be analyzed from all possible angles. Specific time schedule to be set up for handling complaints at all level. Complaints which require time for examination should invariably be acknowledged promptly. Branch and zonal office must send action taken report on complaints to head office on monthly basis.

8. P ERSONAL I NTERACTION WITH C USTOMERS BY B ANK ‘ S S TAFF There should be structured customer meets. Feedback from customers to be considered valuable input.

9. S ENSITIZING O PERATING S TAFF ON H ANDLING C OMPLAINTS Staff to be properly trained to handle complaints. Imparting soft skills for handling customers. Nodal officer to ensure internal machinery for handling complaints/grievances operates smoothly and efficiently at all levels. Feed backs on training needs of staff to be given to the HR Dept.

10. M ODEL P OLICY ON C OLLECTION OF D UES AND R EPOSSESSION OF S ECURITY The Policy for collection of dues and repossession of security should provide for:  Aims and Objectives of the Policy;  General Guidelines;  Medium of giving notice to the borrowers;  Repossession of security;  Valuation and Sale of property;  Opportunity for the borrower to take back the security; and  Engagement of recovery agents.

11. A IMS AND O BJECTIVES OF THE P OLICY Built around dignity and respect to customers. Built on courtesy, fair treatment and persuasion. Aims at recovery of dues in the event of default and not whimsical deprivation of the property. Recognize fairness and transparency in repossession, valuation and realization of security. Process adopted for the recovery of dues to be inconsonance with the law.

12. G ENERAL G UIDELINES Customers to be contacted primarily at the place of his/her choice. Identity and authority of persons authorized to represent bank for follow up and recovery of dues to be made known to the borrowers. The bank to respect privacy of its borrowers. Communication with borrower in simple business language and bank to adopt civil manners for interaction with borrowers. Timing of Contact with borrowers. Borrower’s requests to avoid calls at a particular time or at a particular place to be honoured as far as possible. The bank will document the efforts made for the recovery of dues and the copies of communication sent to customers.

13. M EDIUM OF GIVING NOTICE TO THE BORROWERS Written communications, telephonic reminders or visits by the bank’s representatives to the borrowers place. Not to initiate any legal or other recovery measures including repossession of the security without giving due notice in writing. Any genuine difficulties expressed/disputes raised by the customer to be considered before initiating recovery measures

14. R EPOSSESSION OF SECURITY Repossession of security aimed at recovery of dues and not to deprive the borrower of the property. The recovery process should involve repossession, valuation of security and realization of security through appropriate means. All these to be carried out in a fair and transparent manner. Repossession will be done only after issuing the notice. All reasonable care for ensuring safety and security of the property after taking custody.

15. V ALUATION AND S ALE OF P ROPERTY To be carried out as per law and in a fair and transparent manner. Right to recover balance due only after the sale of the property. Excess amount to be returned to the borrower. In the case of hypothecated assets after taking possession if no payment is forthcoming a sale notice of 7 days time to respond will be sent to the borrower. As per SARFAESI Act, 30 days notice of sale to be sent. Public auction or tender to be published in two lending newspapers, atleast one to be local vernacular paper.

16. O PPORTUNITY FOR THE B ORROWER TO T AKE B ACK THE S ECURITY Bank to consider the handing over the possession of property any time after repossession and before sale of the property. Banks to consider arrangements made by the borrower to ensure timely repayment before handing over possession.

17. E NGAGEMENT OF R ECOVERY A GENTS Appointment of Recovery Agent as per regulatory guidelines. Name and address of Recovery Agents in the panel of the Bank to be displayed on the website. Only Recovery Agents from the approved panels will be engaged by the bank. The identity of the agent to be disclosed to the borrower. The Recovery Agents engaged by the bank will be required to follow a code of conduct covering their dealings with customers.

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