FAIR PRACTICES CODE (FPC)
Grameen Shakti (GSMS) shall adopt the following fair practices in conformity with RBI guidelines laid down in the Master Circular dated July 1, 2015 in this regard.
(a) The FPC in vernacular language will be displayed by GSMS in its office and branch premises.
(b) A statement will be made in vernacular language and displayed by GSMS in their premises and in loan cards articulating their commitment to transparency and fair lending practices.
(c) Field staff will be trained to make necessary enquiries with regard to existing debt of the borrowers.
(d) Training offered to the borrowers shall be free of cost. Field staff will be trained to offer such training and also make the borrowers fully aware of the procedure and systems related to loan / other products.
(e) The effective rate of interest charged and the grievance redress system set up by GSMS will be prominently displayed in all its offices and in the literature issued by it (in vernacular language) and on its website.
(f) A declaration that GSMS will be accountable for preventing inappropriate staff behaviour and timely grievance redressal, will be made in the loan agreement and also in the FPC displayed in its office/branch premises.
(g) The KYC Directions will be complied with. Due diligence shall be carried out to ensure the repayment capacity of the borrowers.
(h) All sanctions and disbursement of loans will be done only at a central location and more than one individual must be involved in this function. In addition, there will be close supervision of the disbursement function.
(i) Adequate steps will be taken to ensure that the procedure for application of loan is not cumbersome and loan disbursements are done as per pre-determined time structure.
Disclosures in loan agreement / loan card
(a) GSMS will have a Board approved, standard form of loan agreement. The loan agreement will preferably be in vernacular language.
(b) In the loan agreement, the following will be disclosed:
(c) The loan card will reflect the following details:
Non-coercive methods of recovery
(a) Recovery will normally be made only at a central designated place. Field staff will be allowed to make recovery at the place of residence or work of the borrower only if borrower fails to appear at central designated place on two or more successive occasions.
(b) GSMS will ensure that a Board approved policy is in place with regard to Code of Conduct by field staff and systems for their recruitment, training and supervision. Training to field staff will include programs to inculcate appropriate behaviour towards borrowers without adopting any abusive or coercive debt collection / recovery practices.
(c) Penalties may be imposed in cases of non-compliance by field staff with the Code of conduct. Generally, only employees and not out sourced recovery agents will be used for recovery in sensitive areas.
Customer Protection Initiatives
GSMS will ensure that greater resources are devoted to professional inputs in the formation of SHG/ JLG and appropriate training and skill development activities for capacity building and empowerment after formation of the groups. SCPL will also be prudent and responsible in their lending activity.