The RBI’s decision comes after the death of a pregnant woman (27) in Jharkhand’s Hazaribagh district who was allegedly crushed to death by recovery agents last week under the wheels of a tractor.
The central bank said in a statement that MMFSL through its employees may continue with the activities of recovery or possession.
“The Reserve Bank of India has today directed… Mahindra & Mahindra Financial Services Limited (MMFSL), Mumbai to immediately cease any recovery or possession activity through outsourcing arrangement,” the statement said.
RBI said that this action is based on supervisory concerns observed in the outsourcing arrangement of the said NBFC (Non-Banking Financial Company).
In connection with the woman’s death, the police arrested Roshan, an employee of a Mahindra Finance firm ‘Team Lease’.
Mahindra Group CEO and Managing Director Anish Shah condoled the woman’s death and assured that all aspects of the incident would be investigated.
Source: navbharattimes.indiatimes.com
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