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 into 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:
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Provide to the customers an effective overview of practices followed by the Company in
respect of financial facilities and services offered by the Company to its Customers;
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Enable customers to take informed decision about the financial facilities and services
offered by the Company;
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Promote good, fair, transparent and trustworthy practices by setting minimum standards
in dealings with customers;
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Enable customers to have better understanding of what they can reasonably expect of
the services offered by the Company;
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Reckon with market forces, through competition and strive to achieve higher
operating standards;
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Foster fair and cordial relationship between the customers and the Company
Application For Loans And Its Processing
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All communications to the borrower shall be in the vernacular language or a language
as understood by the borrower
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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.
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If any additional documents/ information are required from the Customer,
same shall be communicated to the Customer immediately.
Loan Disbursements And Terms/Conditions
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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.
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The penal interest that will be charged for late payment shall be mentioned in bold
letters in the sanction letter/loan document.
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An acknowledged copy of the sanction letter shall be kept as part of the document.
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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.
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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
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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.
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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
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The information published in the website shall be updated whenever there is change
in the rates.
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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.
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The rates of interest and the approach for gradation of risk shall also be made available
on the website.
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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.
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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.
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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.
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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.
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If the customer's complaint / dispute are 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.
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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
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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).
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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.
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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.
