M&M Financial free to outsource third party recovery agents as RBI lifts curbs

Non-banking finance firm Mahindra & Mahindra Financial Services Ltd on Wednesday, January 4, said the Reserve Bank of India (RBI) has decided to lift restrictions on the company — preventing it from carrying out any recovery or repossession activity through third party agents — with immediate effect.

"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 afore-mentioned restrictions imposed on the company with immediate effect," the company in an exchange filing said.

Back in September, the RBI imposed restrictions on the company after the death of a pregnant woman (27) in Jharkhand’s Hazaribagh district, who was allegedly crushed to death under the wheels of a tractor by recovery agents.