In exercise of its powers under Section 45L(1)(b) of the Reserve Bank of India Act, 1934, the Reserve Bank of India today directed Mahindra & Mahindra Financial Services Ltd. (MMFSL), Mumbai, to immediately cease carrying out any recovery or repossession activity through outsourcing arrangements, until further orders. However, the aforementioned NBFC may continue to conduct recovery or repossession activities through its own employees.
This action is being taken in response to material supervisory concerns raised by the said NBFC regarding the management of its outsourcing activities.
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Here is a copy of the information released by the Reserve Bank Of India.
