Debt Recovery Agents

Teacher

skilllabs

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
9	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