Debt Recovery Agents

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COURSE DESCRIPTION

In recent times retail credit has been growing at a tremendous pace. Banks, NBFCs, MFIs are playing a key role in this growth story. New challenges are being faced by lenders when both on sanctioning and collection end. The methods applied by lenders through recovery agents have caught lot of media and regulators attention resulting in adverse publicity of the sensitive but very important function of banks. This created a strong reputation risk not only for a particular lender but the for the entire industry at large.

OBJECTIVES

The DRA program is designed with an objective to provide basic knowledge inputs on collection recovery function of a banking organization. The program aims to give basic information about underlying principles of credit collection, Procedure involves in the collection process, code of conduct to be adopted by recovery agents with valuable tips, techniques and real time best practices on the issue.

LEARNING OUTCOMES

Learners are able to:

  • Understand credit parameters and customer orientation and behavioral aspects of debt.
  • Able to classify the assets as per their dues past days
  • Able to communicate and negotiate with customer for timely repayments
  • Can explain the implication of legal and non legal actions
  • Can exercise the repossession process with due diligence and procedural framework

 

COURSE OUTLINE

S No Chapter Topic Learning Hrs
1 Introduction to Banking Evolution of money, Origin of banking, Banking Functions, framework and generic overview of banking business. Assets, Liabilities, Transaction Services.  2 hours
2 Types of Customers, Banker Customer Relationship Individuals, Firms, HUF, Trusts, Societies, Clubs, Self Help Groups, Bankers right & obligations, Lien & setoff, appropriations, Sectrecy and disclosures.  2 hours
3  KYC & AML KYC & AML compliance is important; key elements of a KYC policy: Customer Acceptance Policy and Customer Identification & Risk Management.  2 hours
4 Introduction to Loan Products Loan products (Secured and Unsecured); Key Terms such LTV, Tenure, IRR wrt HL, LAP, VL, PL  & Credit cards. Rural Finance  4 hours
5 Understanding the Credit Underwriting Process Cardinal principles of credit, 5Cs of Credit, end to end credit underwriting process  2 Hours
6 Post sanction Documentation & Underwriting Understanding the importance of post documentation, Legal agreement, collaterals, securitization and underwriting a loan proposal.  3 Hours
7 Asset Classification NPAs, Standard, Sun-standard, Doubtful, Loss assets, Asset classification into buckets, X Bucket.  3 hours
8 Debt Recovery Agent – Meaning & Legal Framework DRA roles of responsibilities, Collection and Recovery, Legal and Regulatory framework of debt recovery, RBI draft.  3 hours
Functions of debt recovery agents Introduction, Collection dues, Remitting collected funds, book keeping, repossession, legal action, compiling reports.  3 hours
10 Soft Skills and Strategies for Debt Recovery Communication skills, Listening Skills, Interpersonal skills, Persuasive skils, Negotiation, Dealing with difficult debtors, Credit Counseling.  3 hours
11 Rights and Duties of Recovery Agents Regulatory Environment, Understanding regulators, who regulates what, Monetary policy, Trends and Challenges in banking. Banking Ethics.  2 hour
12 International Best Practices Introduction, Practices in USA, Practices in UK, what debt collector should do, What shouldn’t do.  2 hour
13 Fair Practices Code for Debt Collection Understanding the social, economical and legal framework of Debt. Charge, Terms and Conditions  3 hours

Course Features

  • Lectures 0
  • Quizzes 0
  • Duration 3 hours
  • Skill level All level
  • Language English
  • Students 273
  • Assessments Yes
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