Ensure borrowers are not embarrassed: RBI

Madurai: The Reserve Bank of India has said banks should ensure that loan defaulters are not put to embarrassment while debts are recovered to protect banks` liquidity.

Participating in a two day workshop on `securitisation and reconstruction of financial assets and enforcement of security Interest act 2002` here on Saturday night, RBI`s principal legal advisor G S Hegde said the act allowed banks to auction properties when borrowers failed to repay the loan. It helped them reduce Non Performing assets.

However banks should engage trained recovery agents to recover the money, he said, adding it was important to deal with debtors with `humaneness`.

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