National Housing Bank has issued guidelines in respect of engagement of the services of Recovery agents vide its circular No- NHB (ND)DRS/Pol-No.25/2008, Dated July 14, 2008.

IHFL has framed the guidelines for engaging the services of Recovery agency and its working for and on behalf of IHFL within the framework of the guidelines of NHB.These guidelines are given as below.

A). ENGAGEMENT OF RECOVERY AGENCY:-

i) The Branch Manager shall seek the agency to provide its profile which may include details of the owners, all addresses, hierarchy, contact details, details of the establishment, existing clients list, nature of services provided, manpower and the internal controls of its operations. Such profile may be obtained from all prospective agencies.

ii) The Branch Manager along with the Collection Officer shall visit the office of such prospective agency and prepare a report as per prescribed format.

iii) On basis of the outcome of such visits the Branch manager shall recommend the appointment of particular agency which meet the requirements the criteria's to the best possible extent. Such recommendation shall be made to the Regional Head.

iv) The Regional Head shall go through all such reports and approved the appointment of the agency as recommended by the Branch manager. While approving the appointment the Regional head shall satisfy himself/herself about the suitability of the recommended agency.

v) After obtaining such approval from Regional head the Branch manager shall issue the letter of appointment to such agency mentioning there in tenure of appointment, the scope of work and the remuneration payable.

vi) The agency shall return the second copy of letter of appointment back to IHFL as a token of acceptance of the appointment along with the terms and conditions.

vii) Upon receiving the acceptance from the appointed agency a contract shall be executed between IHFL and the agency. The contract shall contain descriptive scope of work, remuneration terms, and tenure as well as agency termination conditions.

viii) The agency shall allocate the requisite number of people exclusively for working on behalf of IHFL. The agency shall introduce such allocated people to the collection officer and Branch manager. The antecedents of such people shall be verified by IHFL through the filed investigation agency of such branch. The people shall be allowed to work on behalf of company only on receiving satisfactory report on the antecedents.

Ix) The collection officer shall conduct a training program for such people and their supervisor on the do's and dont's relating to recovery activities.

x) The case for recovery is allotted to such agency only after completion of all the formalities as mention above.

xi) Any change in the appointment of an agency shall be intimated to the borrower.