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November 20, 2007 15:36 IST
The Reserve Bank of India [Get Quote] has warned ICICI Bank [Get Quote] of stern action in case incidents of coercive methods by recovery agents of the bank recur, the Rajya Sabha was informed on Tuesday.
"The bank was advised by the Reserve Bank in October, 2007 that if such incidents recur in future, RBI would be constrained to take stern action," Minister of state for Finance P K Bansal told the House in a written reply.
Earlier, in view of the alleged harassment of customers by ICICI Bank's recovery agents and the judgement of the Supreme Court, the bank was advised by RBI in August to investigate and take action against the recovery agents involved.
The bank was also advised to look into the system of appointing and reviewing performance of recovery agents and undertake comprehensive review of customer complaints at the highest levels.
Bansal said the apex bank has reported that the customer who had availed the car loan from ICICI Bank filed a case under Section 308 (attempt to commit culpable homicide) of the Indian Penal Code with the IP Estate Police Station in New Delhi, under which three executives of the possession agency were arrested but were later released on bail.
On November 2, Delhi State Consumer Commission has imposed "punitive damages" of Rs 50 lakhs (Rs 5 million) on ICICI Bank for alleged use of force and coercive methods by some recovery agents of the bank to take possession of the vehicle finance by the bank, Bansal said.
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