AUXILO FINSERVE PRIVATE LIMITED (Auxilo/Company) believes in the
conduct of the affairs of its constituents in a fair and transparent manner by
adopting highest standards of professionalism, honesty, integrity and ethical
To ensure strict compliance with ethical and legal standards across the company, the Whistle blower Policy has been formulated. The Policy provides a window to raise a concern over an issue which is unethical, actual or suspected fraud or violation of law, thus encouraging all its constituents to timely report any alleged wrong doings, potential illegal activity or suspected impropriety.
The Policy, therefore, defines the process of raising a complaint, the safeguards for the person raising a complaint, the roles and responsibilities of the stakeholders and sets the timelines for processes to be followed.
An indicative list of instances that may be reported under this policy has been annexed to this policy as Annexure I.
The Policy covers all directors, employees, third party vendors and consultants operating out of any location of the Company or for the Company.
- “Audit Committee” means the Audit Committee constituted by the Board of Directors of the Company in accordance with Section 177 of the Companies Act, 2013.
- “Disciplinary Action” means any action that can be taken on the completion of or during the investigation proceedings including but not limited to a warning, imposition of fine, suspension from official duties or any such action as is deemed to be fit considering the gravity of the matter.
- “Employee” means every employee of the Company, including contractual employees and the directors in the employment of the Company.
- “Subject” means a person against or in relation to whom a Complaint is made or an evidence is gathered during the course of an investigation.
- “Whistle Blower” is a person or entity making a complaint of any actual or suspected unethical and improper practice that he/she may have observed or has knowledge.
- Complaint: The reporting of any Unethical and Improper Practice under the policy provisions made in good faith by a Whistle Blower.
- “Ombudsperson” shall be the Head – Human Resources of the Company and shall be authorized to receive the complaints lodged by a Whistle Blower, supervise the investigation and ensure appropriate action. Ombudsperson shall report directly to the Audit committee in relation to any matter under this policy.
Raising a complaint
It is the duty of all the directors, employees, vendors, consultants to notify the company if they observe or learn of any unethical or improper practices. Failure to promptly raise a known or suspected violation shall also be considered as an unethical behaviour. This is an extension of the company’s “Code of Conduct” which provides for the standards of ethical behaviour and personal conduct of the employees.
Guiding principles for raising a complaint
- Reports of allegations of suspected Unethical and Improper Practices are encouraged to be made in writing so as to assure a clear understanding of the issues.
- The reports should be factual rather than speculative and must contain as much specific information as possible to allow for proper assessment of the nature, extent and urgency of preliminary investigative procedures.
- The Whistle Blower need not prove the concern but must demonstrate sufficient grounds for raising the concern.
- The Whistle Blower is expected to provide all factual corroborating evidence, as is available / possible, to enable the commencement of an investigation, material which demonstrates sufficient grounds for concern.
- The disclosure can also be made anonymously, but it will be the decision of the Ombudsperson to further act upon an anonymous Complaint or not, depending upon the disclosure so made.
- The motivation of the Whistle Blower is irrelevant to the consideration of the validity of the allegation.
- The Whistle Blowers will not be immune from disciplinary action if the Whistle Blower is found guilty of or is a party to the allegations.
Procedure to raise a complaint
The Complaint against the employees can be made in any of the following methods:
- Written Complaint: A written Complaint can be sent to the Company’s registered office address captioning it as “Confidential under Whistle Blower Policy” and addressed to the Ombudsperson,
- Email – A Complaint can be sent via email to the Ombudsperson at email@example.com
The complaints so received will be attended to by the Ombudsperson.
The Complaint against the Directors and the Ombudsperson can be made in any of the following methods:
- Written Complaint: A written Complaint can be sent to the Company’s registered office address captioning it as “Confidential under Whistle Blower Policy” and addressed to the Audit Committee Chairman
- Email – A Complaint can be sent via email to the Audit Committee Chairman at firstname.lastname@example.org
Procedure for investigation
All Complaints received will be categorized in two broad categories:
- Complaints against any Director and Ombudsperson
- Complaints against employees of the Company.
Complaints against any Director and Ombudsperson
Complaints against a Director and Ombudsperson shall be written to the Chairman of the Audit Committee.
The Chairman of the Audit Committee shall decide to deal with such complaint as he may deem fit including appointing any investigation agency to investigate such a Complaint and report to the Audit Committee. Any disciplinary action shall be decided by the Audit Committee.
Complaints against employees of the Company
The Ombudsperson will carry out preliminary investigation of a Complaint to decide if a full investigation is required based on facts alleged in the Complaint. If a full investigation is not required, the Ombudsperson shall prepare a report for the Audit Committee.
If the Ombudsperson decides that a full investigation is required, the Ombudsperson shall supervise the investigation and ensure appropriate action The Ombudsperson shall prepare a complete report compiling the details on the complaint received, investigation carried out and the action taken for the Audit Committee.
In certain cases, the Ombudsperson may recommend the appointment of an outside firm / investigation agency to the Executive Committee to review and appoint, to act as an “Ombudsperson” to investigate certain complaints received, for reasons like complaint being from branch location other than where the Ombudsperson operates from, case requires a special skill/technicalities to understand that would help an appropriate investigation,
Complaints against employees of the Company - In appropriate/exceptional cases, direct access to the Chairman of the Audit Committee will be permitted subject to the approval of the Ombudsperson
A Quarterly update shall be provided by the Ombudsperson to the Audit Committee.
In case the Ombudsperson reaches a conclusion that a Complaint has been made in bad faith and is a false accusation, or is an abuse of process, or the Complaints are repeatedly frivolous, then the Ombudsperson may recommend that appropriate action be taken against the person making the false Complaint(s), including reprimand. Having said that, the Company clearly understands that some Complaints may not result in any investigation or action at a later stage even though they are made in good faith. In such circumstances, no action would be initiated against the Whistleblower. It is also clarified that this process should not be used as a grievance redressal mechanism.
Remedies and Discipline
If it is determined that an Unethical and Improper Practice has occurred, the following actions may be taken, as deemed fit to correct it:
- Any person found guilty of violation of the Company's Code of Conduct will be subject to disciplinary action up to and including termination of employment or removal from position associated with the Company.
- Appropriate procedures, policies, and controls will be established in all departments to ensure early detection of similar violations.
- During the investigation period or at any time thereafter, if any employee is found to be (a) retaliating against the Whistle Blower, (b) coaching witnesses or c) tampering with evidence, then it would lead to severe disciplinary action including termination of employment.
- For the avoidance of doubt, this Policy does not preclude the remedies/processes available and provided under applicable law(s) for any Unethical and Improper Practice.
Whistle Blower Protection
No unfair treatment will be meted out to a Whistle Blower by virtue of his/her having reported a complaint under this Policy.
The Company will keep the Whistle Blower's identity confidential, unless (a) the person agrees to be identified; (b) identification is necessary to allow the Company or law enforcement officials to investigate or respond effectively to the report; (c) identification is required by law; or (d) the person accused of violations of the Unethical or Improper Practice is entitled to the information as a matter of legal right in disciplinary proceedings.
The Company prohibits retaliation against a Whistle blower with the intent or effect of adversely affecting the terms or conditions of employment (including but not limited to, threats of physical harm, loss of job, punitive work assignments, or impact on salary or wages). Whistle Blowers who believe that they have been retaliated against may file a written Complaint with the Audit Committee. A proven Complaint of retaliation shall result in a proper remedy for the person harmed and severe disciplinary action including termination of employment against the retaliating person. This protection from retaliation is not intended to prohibit managers or supervisors from taking action, including disciplinary action, in the usual scope of their duties and based on valid performance-related factors.
Any other Employee assisting in the said investigation or furnishing evidence shall also be protected to the same extent as the Whistle Blower.
The Whistle Blower, the subject, the Ombudsperson and everyone involved in the process shall
- maintain complete confidentiality/ secrecy of the matter
- not discuss the matter in any informal/social gatherings/ meetings
- discuss only to the extent or with the persons required for the purpose of completing the process and investigations
- not keep the papers unattended anywhere at any time
- keep the electronic mails/files under password
- a record of complaints, conclusion, actions etc, if any, shall be maintained by the Company.
- not to post any of the details of the matter on social media site
- Any matter, if needs to be notified to the Government/Statutory authorities should be done post consent of the company
- If anyone is found not complying with the above, he/ she shall be held liable for such disciplinary action as is considered fit.
Functions and role of the Ombudsperson
- To receive Complaints and provide acknowledgment to the Whistle Blower within two working days of receiving the Complaint
- To recommend the appointment of an outside firm / investigation agency to act as an “Ombudsperson” to investigate certain complains received, for reasons like complaint is from branch location other than where the Ombudsperson operates from, case requires a special skill/technicalities to understand that would help an appropriate investigation, to the Executive Committee to review and appoint.
- To maintain tracker for Complaints raised along with action taken report
- To carry out an initial investigation based on preliminary evaluation of Complaint and the quality of information / evidences provided for Complaints, within 1 week of receiving the Complaint and supervise to obtain the investigation report wherever necessary;
- The Ombudsperson shall then be responsible to take charge immediately of the Investigations report.
To review the final report and upon providing necessary opportunity to hear for both the Whistle Blower as well as the person against whom the complaint is received, the Ombudsperson shall decide on the disciplinary action to be taken for each case.
To review and monitor corrective action initiated to prevent/minimize the recurrence of such events.
To present an update on cases investigated and action taken report to the Audit Committee
In case of repeated frivolous complaints, the Ombudsperson may take suitable action against the concerned employee, including reprimand;
All documentation pertaining to the complaints, including but not restricted to the investigation report corrective action taken, and evidence will be maintained by the Ombudsperson for a period of not less than 3 years from the date of disposal of the Complaint.
Functions and role of Audit Committee:
To review and approve the “Whistle Blower” process / framework;
To review and monitor cases presented each quarter;
To review the final report submitted by the Chairman of the Audit Committee post investigation and decide any disciplinary action to be taken in case of Complaints received against the Corporate Officers
If any of the members of the Audit Committee have a conflict of interest in a given case, they should recuse themselves and the others on the Committee should deal with the matter on hand. In an event more than one member recuses themselves and there is no requisite quorum, the matter shall be referred to the Board.
In an event, the Chairman of the Audit Committee is required to recuse himself, the remaining members of the Audit Committee shall elect one amongst themselves to act as the Chairman.
Chairman of Audit Committee:
To deal with Complaints received against the Corporate officers, or against any Director or Chairman of the Company; the Chairman of the Audit Committee shall decide to deal with such Complaint as he may deem fit including appointing any investigation agency to investigate such the Complaint; and
To submit final report to the Audit Committee.
The Audit Committee may report the case to the Board, if deemed necessary.
Reporting to Audit Committee
A quarterly report with number of complaints received under the Policy and their outcome shall be placed before the Audit Committee.
The Audit Committee reserves the right to review, amend or modify this Policy in whole or in part, at any time.
- Unethical business practices like bribery taken / given
- Non-financial significant favors, gifts beyond the defined guidelines
- Misuse of company funds, assets, property, facilities etc.
- Negligence causing substantial risk to public health and safety
- Manipulation of company data / records
- Financial irregularities, including fraud, or suspected fraud
- Abuse of authority
- Criminal offence
- Theft of confidential / proprietary / customer information
- Violation of law / regulation organization wide
- Embezzlement of company funds/assets
- Breach of employee Code of Conduct or Rules
- Any other unethical behaviour
1. THE POLICY
The Nomination and Remuneration Committee [pursuant to the provisions of the
Companies Act, 2013] recommended draft “Remuneration Policy” received the Board
approval on 23rd January, 2019.
It lays down provisions relating to remuneration payable to the Directors, Key Managerial Personnel, Senior Management and all the other employees of the company
The Policy aims to establish remuneration system to attract, retain, reward and motivate the best talent in the industry it operates.
The Policy lays down the company’s commitment to
- Establish the remuneration system driven by the strategic objectives of the company
- Establish remuneration practices strengthened by the principles of meritocracy and fairness.
- Ensure the relationship of remuneration to performance is clear and meets appropriate performance benchmarks.
The standards so set shall be the guidelines for the Committee, Company’s management and Human Resources Department to follow in its recruitment process.
2. SCOPE AND COVERAGE
The Policy covers the following in the subsequent sections:
- Criteria to appoint a person as a director or personnel in the senior management
- Criteria for determining qualifications, positive attributes and independence of director
- Guiding principles for the Remuneration payable to Directors, Key Managerial Personnel, Senior Management and other employees of the company
- Evaluation mechanism of the Board, Committees and directors
3. DEFINITIONS AND INTERPRETATION
Unless the context otherwise requires, words and expressions used in the policy and not defined herein but defined in the Companies Act, 2013 as may be amended from time to time shall have the meaning assigned to them therein.
3.1.1. “Board” shall mean the Board of Directors of the Company;
3.1.2. “Committee” shall mean Nomination and Remuneration Committee as constituted and reconstituted by the Board of Directors of the Company in accordance with the company law and applicable provisions.
3.1.3. “Company” shall mean Auxilo Finserve Private Limited;
3.1.4. “Company Law” means the Companies Act, 2013 and rules thereunder;
3.1.5. “Independent Director” shall mean the Director referred to in section 149 of the Companies Act, 2013
3.1.6. “Senior Management” shall mean Senior Management means Personnel of the company who are members of its core management team excluding Board of Directors comprising all members of management one level below the executive directors, including the functional heads.
3.1.7. “Key Managerial Personnel” shall mean the following:
- the Chief Executive Officer or the Managing Director or the Manager;
- the Whole-time director;
- the Chief Financial Officer;
- the Company secretary;
4. CRITERIA FOR APPOINTMENT AS A DIRECTOR OR A PERSONNEL IN THE SENIOR MANAGEMENT
The Committee shall identify persons who are qualified to be appointed as the Directors of the Company or who may be appointed in the Senior Management of the company and recommend to the Board their appointment and removal.
The Committee shall recommend only upon the ascertainment of the credentials of the person such as the educational qualifications, experience and expertise for the position being considered.
The Committee shall be guided by the following criteria:
- The Person to be appointed as Director, Key Managerial Personnel (in accordance with the provisions of the Company Law) or a personnel at the Senior Management Level should possess the qualifications, expertise and experience requisite to the position he/she is considered for appointment. The committee shall exercise due diligence and be guided by the prudence to decide whether the qualification, expertise and experience possessed by a person is adequate for the concerned position.
- The Committee while identifying a person for the position of a Director may be guided by the fact that the company seeks the guidance, insights and directions from the Directors derived from their vast experience while having them on its Board. The Board members’ review, advice and expertize helps the company in sound decision making. Their experience, expertize and foresight stands as a great asset to the company, besides the honour that their association bestows upon the Company.
- The Committee shall ascertain the integrity, the qualifications and the experience in the industry for the position of the Executive/Whole-time Directors/Key Management Personnel and Personnel at Senior Management Level. These positions shall be on a full time basis devoting all the professional time of the Personnel to the Company.
- The tenure, appointment and the reappointment of all the positions shall be subject to the applicable provisions of the Company Law and to the Board approved Human Resources Policies of the Company. Retirement/Removal
- Due to any reason for any disqualification mentioned in the Companies Act, 2013, rules made thereunder or under any other applicable Act, rules and regulations, the committee may recommend, to the board with reasons recorded in writing, removal of a Director or Key Managerial Personnel subject to the provision and the compliances of the said Act, rules and regulations.
- The Whole-time Director, Key Managerial Personnel and Senior Management Personnel shall retire as per the applicable provisions of the Companies Act, 2013 and the prevailing Human Resource policies of the company. The Board will have the discretion to retain the Whole-time Director, Key Managerial Personnel and Senior Management Personnel in the same Position / Remuneration or otherwise, even after attaining the retirement age, for the benefit of the Company. Remuneration
- The Remuneration / Compensation / Commission etc., to the Executive Directors shall be determined by the Committee and recommended to the Board for approval at the time of appointment.
5. CRITERIA FOR DETERMINING QUALIFICATIONS, POSITIVE ATTRIBUTES AND INDEPENDENCE OF DIRECTOR
The Committee shall identify persons who are qualified to be appointed as Independent Directors of the Company and recommend to the Board their appointment.
The Committee shall recommend only upon the ascertainment of the credentials of the person such as the educational qualifications, experience and expertise for the position of an Independent Director of the Company.
The Committee shall be guided by the following criteria:
- The Person to be appointed as an Independent Director should possess the qualifications, expertise and experience requisite to the position.
- The Committee while identifying a person for the position of an Independent Director may be guided by the fact that the company seeks the guidance, insights and directions from the Independent Directors derived from their vast experience while having them on its Board. The review of the business by the Independent Directors, their advice and expertize helps the Company in sound decision making.
- The integrity, experience, expertize and foresight of the Independent Directors stands as a great asset to the Company, besides the honour their association bestows upon the Company.
- To recommend for the position of the Independent director the Committee be guided by the provisions under the Company law to determine the status of independence of the Director.
- For determining and recommending the terms of appointment in reference to the tenure, reappointment and others, the Committee shall be guided by the applicable provisions of the Company law.
- The appointment and the reappointment of all the independent directors shall be subject to the applicable provisions of the Company Law.
- The Remuneration / Compensation / Commission etc., to the Independent Directors shall be determined by the Committee and recommended to the Board for approval at the time of appointment. The sitting fees payable to the Independent Directors shall be as determined by the Board from time to time.
6. REMUNERATION PAYABLE TO DIRECTORS, KEY MANAGERIAL PEROSONNEL AND OTHER EMPLOYEES
Principles of remuneration
- The remuneration system shall be based on the principles of meritocracy and fairness.
- The remuneration payable shall be based on the performance benchmarks of the respective position and industry standards.
- The remuneration structure of the Directors, Key Managerial Personnel and Senior Management Personnel should strike a balance between fixed and incentive pay reflecting short and long-term performance objectives appropriate to the working of the company and its goals.
- The remuneration fixed of all the other employees shall be performance driven and should be as per industry standards and in accordance with the Board approved Human Resource Policies. The remuneration structure may or may not be consisting of fixed and incentive categorization. Annual Review of the Remuneration
- The Committee shall annually review the remuneration payable to the Executive Directors/Whole Time Directors/Managing Director and recommend any revision thereof on the basis of financial conditions of the company and the performance of the respective director.
- The annual review of the remuneration payable to all the employees of the company including the Key Managerial Personnel and Personnel at the Senior Management level shall be based on the review of the performance against the benchmarks set for the respective position. The same shall be subject to the Board approved Human Resource Policies of the Company. Remuneration to the Executive Directors/Whole time Director/Managing Director (Director)
- The remuneration and commission to be paid to the Executive Directors/Managing Director/Whole time Director shall be in accordance with the provisions of the Company Law and the rules made thereunder.
- The Committee while recommending the remuneration shall ensure that the level and composition of remuneration is reasonable to attract, retain and motivate directors of the quality required to run the company successfully and is thus sufficient to justify the position and responsibility of the Directors.
7. EVALUATION MECHANISM OF THE BOARD, COMMITTEES AND DIRECTORS
The Committee shall be empowered to specify the manner for effective evaluation of performance of the Board, its Committees and the individual directors to be carried out. It shall lay down the manner for effective evaluation of performance of Board, its committees and individual directors, review its implementation and compliance.
8. AMENDMENT TO THE POLICY
The Policy shall be reviewed annually or earlier if deemed necessary by the Board of Directors of the Company.
The amendments in the Policy may also be necessitated as and when the applicable provisions of the Company Law based on which the Policy is made, is amended. With effect from the date of amendment in law the amended provisions will prevail over the policy until the suitable amendments are made to the Policy.
Auxilo FINSERVE PRIVATE LIMITED (Auxilo /Company) being a Non-deposit taking Non-Banking Financial Company (Category II) registered with Reserve Bank of India having customer interface is required to formulate its Board approved Fair Practices Code (FPC/Code).
Fair Practices code is formulated pursuant to the Reserve Bank Directives - Non-Banking Financial Company – Non-Systemically Important Non-Deposit taking Company (Reserve Bank) Directions, 2016. The Code aims to enhance the scope of the spirit underlying these directions of the Reserve Bank of India.
- The Code lays down Auxilo's commitment towards its customers/borrowers (used interchangeably) to deliver the financial services and products in a fair and transparent manner.
- The Code aims to lay down the standards of transparency in all its dealings, such that the customers are able to take an informed decision while adopting Auxilo's products and services.
- The standards so set shall be the guidelines for its management and employees to follow strictly in all its dealing with the customers.
FPC shall apply to all employees of the Company and other persons authorized to represent it in the course of its business with respect to all products and services. It shall apply across all aspects of its operations including marketing, loan origination, processing, servicing and collection activities.
Broad principles on which the Code is built
- Clear and transparent information to be given about the products and services and the same to be in the language understood by the customers.
- The terms and conditions of each of the product and services to meet the spirit of the RBI guidelines and applicable laws.
- Prompt customer grievance redressal, no discrimination amongst the customers on the basis of age, race, caste, gender, marital status, religion or disability.
- Information to the customer – Updated version of the Code shall be displayed on the Company's website and at each branch office in a conspicuous place. A copy of the Code to be provided on request to the customer/prospective customer
APPLICATION FOR LOANS AND THEIR PROCESSING
All communication to the borrower shall be in the language understood by the borrower. The essential information which affects the interest of the customers should be communicated to the borrower so as to help them carry out a meaningful comparison before choosing Auxilo's products and services. Hence while sourcing, at the minimum the interest rates, the processing fees and any other charges including prepayment charges and options shall be communicated to the customer.
Additionally the Loan application form shall also provide the list of document required to be submitted by the customer.
On receipt of completed application form an appropriate acknowledgement shall be provided indicating the time frame being not less than 15 days, within which the loan application will be disposed.
LOAN APPRAISAL AND TERMS / CONDITIONS
It shall be conveyed in writing to the borrowers in the language understood by them by means of a sanction letter about the sanction of the loan. The Sanction letter shall indicate the amount of loan sanctioned along with the terms and conditions including annualized rate of interest and method of application thereof. The borrowers' acceptance of these terms and conditions shall be kept on record.
The loan agreement shall be signed physically by both the parties that is the company and the borrower and where the agreement is to be signed digitally, the same shall be signed by both the company as well as the borrower electronically pursuant to the provisions of Information Technology Act.
The loan agreement to be signed with the borrower shall mention the penal interest that would be charged for late repayment in bold. An electronic or physical copy of the executed loan agreement along with its enclosures quoted therein shall be furnished to the Customer upon disbursement of loan.
DISBURSEMENT OF LOANS INCLUDING CHANGES IN TERMS AND CONDITIONS
Notice shall be given to the borrowers in an event of any change in the terms and conditions in reference to the disbursement schedule, interest rates, service charges and the prepayment charges, in the language understood by the borrower clearly indicating the changed terms. Notice may be given by sending a Short Messaging Service (SMS), courier, electronic mail, email, registered or certified mail or facsimile where available. With the constant technological developments the means of communication have been enlarging and due to the ease thereof the customers may prefer the use of those means in addition to the above specified options. The company may explore these options and if found feasible can provide the customers the list of options to choose from. If the customer opts to be provided notice by any specific means of communication, the same shall be used to send out any kind of notice.
Changes in the interest rates and charges shall be effected only prospectively.
Any decision to recall/accelerate payment or performance shall be in consonance with the loan agreement.
All securities shall be released on repayment of all dues or on realization of the outstanding amount subject to any of the company's legitimate right or lien for any other claim it may have against the borrower. If such right of set-off is to be exercised, the Company shall give notice to the borrower about the same with full particulars about the remaining claims and the conditions under which it is entitled to retain the securities till the relevant claim is settled / paid.
The Company shall refrain from interference in the affairs of the borrower except for the purposes provided in the terms and conditions of the loan agreement (unless new information, not earlier disclosed by the borrower, has come to its notice).
Transfer of loan request – If the borrower requests for transfer of the loan account, the company shall either accord its consent or intimate its objection, if any to the same, and convey its decision in writing within 21 days from the date of receipt of request. Such transfer shall be as per the contractual terms entered into with the borrower and should be in consonance with law.
The Company shall not charge any foreclosure or prepayment penalties on the term loans sanctioned to individual borrowers at the floating rate of interest.
COLLECTION OF DUES
The customer shall be promptly informed about the repayment process, schedule including the amount, tenure and periodicity of repayment. The customers shall be provided all the information regarding dues and shall endeavour to give sufficient notice for payment of dues. The customer shall be reminded by sending notice or by making personal visits and / or repossession of security if any.
In the matter of recovery of loans, undue harassment for example persistently bothering the borrowers at odd hours, use of muscle power for recovery of loans, etc., shall be strictly avoided. The recovery methods should be courteous, fair and persuasive. The Company employees and the persons authorized to represent the company shall always deal with the customers in a polite manner. They shall identify themselves and display the authority letter issued by the company.
Guidelines for the collection of dues:
- Privacy of the Customer should be respected at all times
- Contacting the customer
- Time : The customers should be contacted only between 7.00 am and 7.00 pm
- Place: The customers should be given an option to choose a place to contact them or if no such place is specified then at their respective residence address and if the same is unavailable only then at the place of business / occupation
- The company representatives approaching the customer for collection should always maintain decorum, decency and interact with the customer in a civil manner.
- If the Customer requests not to contact at a certain place/time, such a request should always be honoured. (Unless the customer's request is solely to avoid meeting the company's representatives for collection)
- Details about the number of times the customer has been contacted by telephone calls and the conversation details in the form of minutes should be maintained
- The Company's endeavour should be to assist the customer to clear the differences, if any, about the dues and help resolve the disputes, if any, in an amicable manner
- Any tragic occasions or bereavement in the family of the customer are the instances when the company officials shall strictly avoid paying visit/making calls for collection
RATE OF INTEREST AND GRADATION OF RISK
A Board approved procedure shall be laid down for determining the interest rates, processing and other charges.
The rate of interest applicable to customers would be based on Company's Benchmark Lending Rate which in turn is dependent on factors such as cost of funds, margin, etc., plus a spread which is determined on the risk gradation of each application. The rate of interest would also differ depending on the category of customer.
Gradation of risk depends on factors such as student's academic background, employability of the selected course from a selected college and country of study, financial strength of the co-borrower, loan repayment capability, credit history, collateral offered or not, serviceability of the loan through Company's branch network, cost/s associated with underwriting and servicing the loan.
The application form shall include the rate of interest and indicate that the differential rate of interest shall be chargeable pursuant to the guidelines issued by the Reserve Bank of India from time to time. The sanction letter for the information of the customer shall indicate the same.
The Managing Director/Chief Executive Officer of the Company shall submit to the Board on a quarterly basis on the review of the compliances under the code and functioning of the greivances redressal mechanism at various levels of management.
The Guarantor(s) shall be informed about their liability as Guarantor in terms of amount and the circumstances when the liability would arise. The Guarantors shall also be given an understanding about the recourse available with the company if he/she fails to pay the amount guaranteed for payment.
The Company shall also inform the guarantor of any material adverse change/s in the financial position of the borrower for whom he / she stands as a Guarantor.
PRIVACY AND CONFIDENTIALITY
The Company shall always maintain confidentiality with respect to the personal information of customers. Following would be the exception to this:
- With the prior consent of the customer, when such an information is to be given as a reference
- On the Customers' request to provide the information
- Required to be provided under the provisions of laws/regulations
- Being a duty towards the public to reveal the information
- In the Company's interests for reasons like to prevent fraud
The customers shall be informed about their rights under the existing legal framework for accessing the personal records that the company holds about them.
CREDIT REFERENCE AGENCIES
The customer shall be informed that the law mandates the company to pass the borrowers account information to credit reference agencies.
The customer shall be intimated in writing that the company intends to give information about the debts of the customer to the credit reference agencies. The intimation to the customer shall explain the role of credit reference agencies and the effect of the information provided by them will have on their ability to get credit.
On customer's request, a copy of the information sent to credit reference agencies shall be provided.
GRIEVANCE REDRESSAL MECHANISM
The Grievance Redressal Mechanism (GRM) shall provide for resolving any disputes arising out of the decisions of the company's functionaries. All disputes arising out of the Company's functionaries shall be heard and disposed of at least at the next higher level.
The GRM shall provide for the following:
- The system and the procedure for receiving, registering and disposing of complaints and grievances in each of its offices.
- The procedure shall define - where and how the complaint/grievance (used interchangeably) is to be filed, turnaround for the reply, appellate mechanism if not satisfied with the initial resolution of complaint.
- Acknowledgement shall be provided with the reference number for the complaints received and also state the name of the officer who would deal with the complaint.
- The process of informing the customer about the above stated system and procedure for redressing their complaints at a faster pace.
- The complaints received shall be resolved in a maximum of 30 days period
The mechanism so approved by the Board of Directors shall nominate a Company's official as the Grievance Redressal Officer who can be approached by the public for resolution of complaints against the Company.
For the benefit of the customers at the operational level, the company shall display the name and contact details (Telephone/Mobile no. and Email address) of the Grievance Redressal officer prominently at each of its branches and places where the business is transacted.
For the information of the Customers, if the customer's complaint / dispute is not redressed by the Grievance Redressal Officer within a period of one month, the customer may appeal to the Officer-in-Charge of the Regional Office of the Department of Non-Banking Supervision (DNBS) of the Reserve Bank of India (RBI), Mumbai under whose jurisdiction the registered office of the Company falls.
REVIEW OF THE FAIR PRACTICES CODE
The Code shall be reviewed annually or earlier if deemed necessary by the Board of Directors of the Company.
GRM herein provides the process of resolving any disputes/complaints arising out of the decisions of the company’s functionaries. The GRM shall be published on the website of the company and shall be prominently displayed at every branch and office where the company’s business is transacted.
PROCESS TO REGISTER THE COMPLAINT
The Customer/Borrower having any grievance/complaint can register the complaint giving the details of the complaint and the name of the officer/employee of the company concerned in the following ways, which shall be addressed in a maximum of ten working days:
- Call the Customer helpdesk no 022 62463333
- Email at email@example.com
- Can be submitted in writing at the Branch office/place where the business is transacted addressing it to the Branch Manager followed by the location name captioning it as Under GRM"
- Can be posted to the address Auxilo Finserve Pvt Ltd, LG B-13 &14, Art Guild House, Phoenix Market City, Mumbai - 400070, captioning it as “Under GRM”
Branch manager herein will also refer to the manager concerned of the non-branch office where the company’s business is transacted. If the complaint is against the Branch Manager, same should be addressed to the Customer Grievance Redressal Officer.
LEVEL 2: APPELLATE MECHANISM IF NOT SATISFIED WITH THE INITIAL RESOLUTION OF COMPLAINT AT LEVEL 1
If the Customer is not satisfied with the initial resolution or the complaint is against the Branch Manager, the complainant can send the complaint addressing to the Customer Grievance redressal officer quoting the acknowledgment number of initial complaint. Below mentioned are the details of Customer Grievance redressal officer:
|1||Name||Deepika Thakur Chauhan|
Auxilo Finserve Private Limited,
LG B- 13 &14, Art Guild House,
Phoenix Market City,
Mumbai - 400070
|4||Telephone||022 6246 3333|
|5||FAX||022 6246 3334|
At the Level 2, the company shall ensure that the resolution is provided for each complaint in a maximum of ten working days from the date complaint is lodged/made at the Level 2 that is the complaint filed against the initial resolution.
If the customer's complaint / dispute is not redressed within a period of one month, the customer may appeal to the Officer-in-Charge of the Regional Office of the Department of Non-Banking Supervision (DNBS) of the Reserve Bank of India, Mumbai under whose jurisdiction the registered office of the Company falls at the below mentioned address:
Reserve Bank of India,
Department of Non-Banking Supervision,
RBI Building, Opp. Mumbai Central Railway Station,
Near Maratha Mandir,
Byculla, Mumbai – 400 008.
OMBUDSMAN SCHEME OF THE RESERVE BANK OF INDIA FOR NON BANKING FINANCIAL COMPANY
Pursuant to the notification of the Reserve Bank of India to provide for a system of
Ombudsman for redressal of complaints of the customer, the customers can refer below
provisions provided under Ombudsman Scheme for Non-Banking Financial Company.
In addition to the Customer Grievance Redressal Mechanism provided by the Company, the Customer at Level 3 can file a complaint with NBFC Ombudsman appointed by Reserve Bank of India if the customers’ compliant/dispute is not redressed within a period of one month
The details of NBFC Ombudsman appointed by Reserve Bank of India are as follows. The same is specific to jurisdiction the registered office or the Branch office of the Company falls:
Address of the Office of NBFC Ombudsman
Area of Operation
C/o Reserve Bank of India
Tamil Nadu, Andaman and Nicobar Islands, Karnataka, Andhra Pradesh, Telangana, Kerala, Union Territory of Lakshadweep and Union Territory of Puducherry
C/o Reserve Bank of India
Maharashtra, Goa, Gujarat, Madhya Pradesh, Chhattisgarh, Union
Territories of Dadra and Nagar Haveli, Daman and
C/o Reserve Bank of India Sansad Marg
Delhi, Uttar Pradesh, Uttarakhand, Haryana, Punjab, Union Territory of Chandigarh Himachal Pradesh, andRajasthan and State of Jammu and Kashmir
C/o Reserve Bank of India
West Bengal, Sikkim, Odisha, Assam, Arunachal Pradesh, Manipur,
Pursuant to above, the Level 3 of Customer Grievance redressal mechanism may be referred to as Level 4. For the purpose of convenience, the same has been reproduced below.
If the person is aggrieved by an award of Ombudsman or the complaint is rejected, the customer may make an appeal within 30 days of the date of receipt of communication of Award or rejection of complaint before the Appellate Authority i.e the Officer-in-Charge of the Regional Office of the Department of Non-Banking Supervision (DNBS) of the Reserve Bank of India, Mumbai under whose jurisdiction the registered office of the Company falls at the below mentioned address:
Reserve Bank of India,
Department of Non-Banking Supervision,
RBI Building, Opp. Mumbai Central Railway Station,
Near Maratha Mandir,
Byculla, Mumbai – 400 008.
Ombudsman Scheme for Non-Banking Financial Companies 2018:
- All NBFCs
- NBFCs with assets size >= Rs. 100 crore + customer interface
(Excluding: Infrastructure Finance Companies, Core Investment Companies, Infrastructure Debt Fund and NBFCs under liquidation)
- Interest/Deposit not paid OR paid with delay
- Cheque not presented OR done with delay
- Not conveyed the amount of loan sanctioned, terms & conditions, annualised rate of interest, etc.
- Notice not provided for changes in agreement, levy of charges
- Failure to ensure transparency in contract/loan agreement
- Failure/ Delay in releasing securities/ documents
- Failure to provide legally enforceable built-in repossession in contract/ loan agreement
- RBI directives not followed by NBFC
- Guidelines on Fair Practices Code not followed
Written representation to NBFC concerned
At the end of one month
If reply is not received from NBFC or customer remain dissatisfied with the reply of NBFC
If customer has not approached any forum
File a complaint with NBFC Ombudsman (not later than one year after the reply from NBFC)
- Proceedings before Ombudsman are summary in nature
- Promotes settlement through conciliation If not reached, can issue Award/Order
- Yes, If Ombudsman’s decision is appealable Appellate Authority: Deputy Governor, RBI
- This is an Alternate Dispute Resolution mechanism
- Customer is at liberty to approach any other court/forum/authority for the redressal at any stage
Please Refer to Ombudsman Scheme for Non-Banking Financial Companies, 2018 for further details