RupeeCircle

Fair Practices Code

This Fair Practices Code is aimed to provide to all the stake holders, especially customers effective overview of practices followed by the Company in respect of financial facilities and services offered by the Company to its Customers. This Fair Practices Code has been prepared taking in to account the “Guidelines on Fair Practices Code for NBFCs P2P” issued by the Reserve Bank of India and aims to enable customers to take informed decisions in respect of the facilities and services offered by the Company.

Objectives of The Code

This Code has been drawn up to:

  • Provide to the customers effective overview of practices followed by the Company in respect of financial facilities and services offered by the Company to its Customers;
  • Enable customers to take informed decision about the financial facilities and services offered by the Company;
  • Promote good, fair, transparent and trustworthy practices by setting minimum standards in dealings with customers;
  • Enable customers to have better understanding of what they can reasonably expect of the services offered by the Company
  • Reckon with market forces, through competition and strive to achieve higher operating standards;
  • Foster fair and cordial relationship between the customers and the Company

Application For Loans And Their Processings

  • All communications to the borrower shall be in the vernacular language or a language as understood by the borrower
  • Loan application forms issued by the Company shall include necessary information which affects the interests of the borrower and shall indicate the documents required to be executed/ submitted by the borrower.
  • If any additional documents/ information are required from the Customer, same shall be communicated to the Customer immediately.

Loan Disbursements And Terms/Conditions

  • The borrower shall be given a loan sanction letter and copy of the loan document together with annexures/enclosures quoted therein in vernacular language or a language as understood by the borrower which shall include the details of the loan such as amount sanctioned, annualized interest rate, method of application thereof and any other terms and conditions.
  • The penal interest that will be charged for late payment shall be mentioned in bold letters in the sanction letter/loan document.
  • An acknowledged copy of the sanction letter shall be kept as part of the document.
  • Subject to receipt of all the requisite documentation and information and creation of charge over the security, loan applications shall be disposed of in the normal course on the same day of receipt of the application form complete in all respects. However, if there is any delay in sanctioning the loan beyond the period of 2 day due to reasons like field verification etc. customer shall be kept informed of the status of his application.
  • Changes in the terms and conditions will be notified in the website from time to time which will be applicable for all loans sanctioned subsequently.

Rate of Interest

  • The Company shall frame appropriate internal principles and procedures for determining the interest rates and processing and other charges, if any and also to ensure that they are not excessive. The Company shall, at the time of disbursal, ensure that the interest rate and other charges, if any, on loan and advances are in strict adherence to above referred internal principles and procedures.
  • The rate of interest will be annualized rates so that the borrower is aware of the exact rates that would be charged on the loan
  • The information published in the website shall be updated whenever there is change in the rates.
  • The rate of interest and the approach for gradation of risk and rationale for charging different rates of interest to different schemes shall be disclosed in the application form and also communicated explicitly in the sanction letter issued to the borrower.
  • The rates of interest and the approach for gradation of risk shall also be made available on the website.
  • If penal interest is to be levied for late payment, it shall be mentioned in bold in the loan agreement.

Policy on KYC

RupeeCircle shall explain the requirements of KYC guidelines to its customers and inform them about the documents required for establishing the identity of the customer before loan sanctioning, and operation. RupeeCircle would obtain only such information to meet with company’s KYC, Anti-Money Laundering or any other statutory requirements. In case any additional information is asked for, it will be sought separately and shall specify the objective of obtaining such additional information.

Grievance Redressal Mechanism

RupeeCircle has laid down the appropriate grievance redressal mechanism within the organization to resolve disputes arising in this regard which ensures that all disputes arising out of the decisions of RupeeCircle's functionaries are heard and disposed of at the next higher level.

The Board of Directors shall also periodically review the compliance of the Fair Practices Code and the functioning of the grievances redressal mechanism at various levels of management. A consolidated report of such reviews shall be submitted to the Board at periodic intervals

  • RupeeCircle will guide customers who wish to lodge a complaint and also provide guidance on what steps can be taken in case the customer is unhappy with the outcome.
  • After examining the matter, RupeeCircle will send a response as soon as possible; RupeeCircle will also guide the customer on how to take the complaint further if the customer is not satisfied.
  • A Grievance Redressal Officer shall be appointed for the redressal of grievances of the customers including the borrowers, in connection with any matter pertaining to business practices, lending decisions, credit management and recovery, who would in consultation with senior management officials oversee the Grievance Redressal Mechanism. The name and contact details of the Grievance Redressal Officer shall be displayed on the website of RupeeCircle and for the benefits of its customers, the same shall also be displaced prominently on the notice board at its branches/ offices where business is transacted.
  • If the customer's complaint / dispute is not redressed by the Grievance Redressal Officer within a period of one month, the customer may appeal to the Officer-in-Charge of the Regional Office of the Department of Non-Banking Supervision (DNBS) of the Reserve Bank of India (RBI), Mumbai under whose jurisdiction the registered office of RupeeCircle falls. The name and contact details of the Officer-in-Charge of the Regional Office of the DNBS, RBI shall be displayed on the website of RupeeCircle and for the benefits of its customers, the same shall also be displaced prominently on the notice board at its branches/ offices where business is transacted.
  • The Company shall refrain from interfering in the affairs of the borrower except for the purposes provided in the terms and conditions of the letter

General

  • The Company shall refrain from interfering in the affairs of the borrower except for the purposes provided in the terms and conditions of the letter of undertaking (unless new information, not earlier disclosed by the borrower, has come to the notice of the Company).
  • In the matter of recovery of loans, the Company shall not resort to undue harassment viz. persistently bothering the borrowers at odd hours, use of muscle power for recovery of loans etc. The staff of the Company shall be adequately trained to deal with the customers in an appropriate manner so as to ensure proper behaviour.
  • The Company will call delinquent customers between 0900 hrs to 1800 hrs unless special circumstances of the borrower’s business require to call them otherwise outside the hours mentioned.

A Periodical Review of The Fair Practices Code

A periodical review of the Fair Practices Code and functioning of the grievances redressal mechanism at various levels of management would be undertaken by the Company at regular intervals and a consolidated report of such reviews shall be submitted to the Board of Directors in every quarters.

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