Revised – Fair Practice Code (in short FPC) of Dhosa Chandaneswar Bratyajan Samity (DCBS) (the Company) pursuant to Master Circular dated July, 01 2015, RBI/2015-16/16 DNBR (PD) CC.No.054/03.10.119/2015-16.
The Company adopt the all the prescribed rules and regulations laid down in the above said Master Circular, which are as follows:
Application for loans and their processing
- All communication to the borrowers will be in local languages.
- All Loan Application Forms include the necessary information which affects the interest of the borrowers, so that the borrower can make a meaningful comparison with the terms and conditions offered by other Development Organization and it will help them to take proper decision.
- The required documents to be submitted are written clearly in the Loan Application Form.
- An acknowledgement for receipt with the time frame within which the Loan Applications will be
- disposed of given to the borrower.
Loan Appraisal and Terms/Conditions
- The Company will properly communicate to all borrowers about the amount of loan sanctioned along with terms and conditions including annualized rate of interest and method of application.
- Acceptance of terms and conditions by the borrowers shall be kept on record.
- The Company shall furnish a copy of the loan agreement along with the enclosures at the time of sanction / disbursement of loans (a written application of the borrower is required and cost to be borne by the borrower).
General Terms and condition of the loan products are mentioned below :
- Only women borrowers are eligible.
- The borrower must be a member of one JLG
- The loan will be used for any Income Generating Activity only
- Household annual income of the borrower should not exceed Rs 100,000/- in rural area and it should not exceed Rs 160,000/- in non-rural area.
- Interest Rate as per the RBI regulations.
- Total indebtedness of the borrower should not exceed as per limit allowed by MFIN, SADHAN along with the RBI.
- There is no penalty for delayed payment.
- Borrowers and their spouse are covered under insurance.
- Prepayment allowed but without penalty.
- Loan is without collateral.
- Loan is repayable by weekly, fortnightly or monthly installments at the choice of the borrower/group.
Minimum Period of Moratorium
There must be a minimum period of moratorium between the grant of the loan and the due date of the repayment of the first instalment. The moratorium shall not be less than the frequency of repayment e.g. in the case of weekly repayment, the moratorium shall not be less than one week.
Disbursement of loans including changes in terms and conditions
Any change in terms and conditions including disbursement schedule, interest rates, etc. shall inform to the borrowers.
- The Fair Practice Code in vernacular language displayed in its Head Office and Branch Office premises.
- A statement shall be made in vernacular language and displayed in their premises and in Pass Book articulating the commitment to transparency and fair lending practices.
- The staffs shall be properly trained to deal with the customers in appropriate manner and to make necessary enquiries with regard to existing debt of the borrowers.
- The training to the borrowers shall be free of cost. The Field staff shall be trained to offer such training and also make the borrowers fully aware of the procedure and systems related to loan / other products,
- The effective rate of interest charged and the Grievance Redressal System prominently displayed in vernacular language in all its offices and in the literature issued by it and also on its website.
- A declaration that the Company will be accountable for preventing inappropriate staff behavior and timely grievance redressal shall be made in the loan agreement and also in the Fair Practice Code displayed in its office/branch premises
- The KYC Guidelines of RBI shall be complied with. Due diligence shall be carried out to ensure the repayment capacity of the borrowers.
- All sanctioning and disbursement of loans should be done only at a central location and more than one individual should be involved in this function. The procedure for loan application shall be simplified and loan disbursements are done as per pre-determined time.
Disclosures in loan agreement / loan card
- The loan agreement is in vernacular language.
- In the Loan Agreement the followings are disclosed:
- All the terms and conditions of the loan,
- The pricing of the loan involves only three components viz; the interest charge, the processing charge and the actual insurance premium
- No penalty charged on delayed payment,
- No Security Deposit/ Margin is collected from the borrower
- The borrower cannot be a member of more than one SHG / JLG
- The moratorium between the grant of the loan and the due date of the repayment of the first instalmen
- An assurance that the privacy of borrower data will be respected.
- The Pass book reflects the following details:
- The effective rate of interest charged
- All other terms and conditions attached to the loan
- Information which adequately identifies the borrower
- Acknowledgements of all repayments including instalments received and the final discharge.
- The Grievance Redressal System and the name and contact number of the nodal officer clearly mention in the Pass Book.
- The Insurance facility provided with full consent of the borrowers and the related fee structure communicated in the Pass Book.
- All entries in the Pass Bookmade in the vernacular language.
Non-Coercive Methods of Recovery
The Company will treat every customer with respect and dignity. We provide our microfinance services regardless of caste, creed and religion. The Company will maintain a positive bias in favour of the socio-economically vulnerable segments of the society. We always maintain decency and decorum during all customer and employee interactions and also to avoid behaviour which may lead any form of threat or violence.The Company do not believe to use of muscle power, abusive language, persistently bothering borrowers at odd hours for loan recovery purpose.The loan recovery made only at a central designated place. Field staff shall be allowed to make recovery at the place of residence or work of the borrower only if borrower fails to appear at central designated place on 2 or more successive occasions.
Appraisal/compensation/promotion for staffs, The Company gives more emphasis on areas of service and borrower satisfaction than number of loan mobilized and recovery rate.Internal Control SystemThe Company constitute the Fair Practice Committee headed by one Board Member for implementation and monitoring of Fair Practice Code and Code of Conduct (adopted from sector associations-MFIN and Sa_Dhan). The committee looks into implementation, monitoring and periodic review of Fair Practice Code and Code of Conduct throughout the organization. The Board of Directors should also provide for periodical review of the compliance of the Fair Practices Code and the functioning of the grievances redressal mechanism at various levels of management. A consolidated report of such reviews will be submitted to the Board at regular intervals.
Grievance Redressal Mechanism for Customers
A grievance can be defined as any sort of dissatisfaction, which needs to be redressed in order to bring about the smooth functioning of the organization. Broadly, a grievance can be defined as any discontent of dissatisfaction with any aspect of the organization. It can be real or imaginary, legitimate or ridiculous, rated or unvoiced, written or oral; it must be however, find expression in some form of the other.Discontent or dissatisfaction is not a grievance. They initially find expression in the form of a complaint. When a complaint remains unattended to and concerned feels a sense of lack of justice and fair play, the dissatisfaction grows and assumes the status of grievance.
The Pass book reflects the following details
- All our dealings with customers will be open, fair and ethical.
- We will treat all our customers with respect and professionalism.
- We shall explain and disclose the features of our services in a transparent & understandable manner. Further. our applications and agreements shall clearly include:
- Interest rate on loans
- Processing Fee and Insurance Premium and
- All other terms and conditions
- We will make our best efforts to ensure that the loans we provide are within our customers’ capacity to repay.
- We will not engage in any coercive methods to collect repayments.
- We will provide customers with a grievance redressal system to register their complaints and resolve it in a timely & fair manner.
- We respect our customers’ privacy and will treat customer information as private and confidential.
There are three formal stages in which any grievance can be redressed. At the Company, we want to make sure that you get only the very best of service from us – service which you, our valued member, deserves.
- 01 The Company’s members may contact our branches or write to the Branch Manager explaining the details of their issues. Our Branch Manager will be glad to assist you.
- 02 If you do not receive a response within 10 days from the channels under STEP:1, or, if you are not satisfied with the response received, you can escalate your complain to our Help Line Number at our Corporate Office Toll Free No. 033 2334-5593 (from 10.00 AM to 05:00 PM except Saturday, Sunday and other Holidays)
- 03 If you are not satisfied with the response that you receive from the Branch level or channels under STEP 2, or if you do not hear from us in 10 days, you may contact the our Head Office for a speedy investigation and fair resolution of your problem.
You may write to or call this number :
Mr. Animesh Naiya
CB 35, Sector-1, Salt Lake City, Kolkata - 700 064
Phone & Fax No.: 033 2334-5593
- The Company installed complaints/suggestion box at all our branches at prominent places to receive written complaints.
- The Company Head Office address with Telephone number printed in all passbooks.
- During Group Training discuss with our customers about the Grievance Redressed System and its benefits.
The Fair Practices Code is subject to revision based on the RBI guidelines and such revisions shall be made on a time to time basisLast reviewed: By the Board of Directors of the Company in their meeting dated 21st April 2018.