The Reserve Bank of India (RBI) has lifted the ban on Mahindra & Mahindra Financial Services (Mahindra Finance) for outsourcing recovery and repossession agents with immediate effect. On September 22, 2022, the RBI had directed the company to immediately cease carrying out any recovery or repossession activity through outsourcing arrangements, till further orders.
Based on the submissions made by the Company and its commitment to strengthen its recovery practices and outsourcing arrangements, tighten the process of onboarding third party agents and strengthen accountability framework as per its Board approved action plan, the RBI has informed the Company of its decision to lift the aforementioned restrictions imposed on the Company with immediate effect.
Mahindra Finance is one of India’s leading non-banking finance companies.
