Code Of Conduct

The board of Directors, in their meeting held on 9th March, 2013, amended the code of conduct which is presently enforced. The amended code of Conduct is as under

The approved mechanism for redressal of Grievances is as under

1. 1. The Company to disclose all the terms and conditions to the client for all services offered.Disclosure must be made prior to disbursement in Individual sanction letter/Loan card/Loan schedule/passbook/through group centre meetings
2. 2. The company to communicate all the terms and conditions of loan /services offered to clients to vernacular language and must disclose the following terms:

• a) Rate of interest on a reducing balance method
• b) Processing fee
• c) Any other charges or fees howsoever described
• d) Total charges recovered for insurance coverage and risks covered

1. 3. The company to communicate in writing charges levied for all financial services rendered.
2. 4. The companyto follow RBI guidelines with respect to interest charges and security deposit and to declare all interest and fees payable as an all-inclusive annual percentage rate and equivalent monthly rate.
3. 5. The company to maintain formal records of all transactions in according’s with all regulatory and statutory norms, and borrower’s acknowledgement/acceptance of terms and conditions must form a part of this record.
4. 6. The provision of Micro finance to be made only to the eligible clients as per RBI guidelines after obtaining copy’s of the relevant documents from clients as per KYC norms.
5. 7. In case of Insurance product to be offered to the clients the same will be transparently conveyed to the clients and must comply with RBI and IRDA Norms.
6. 8. Proper due diligence as per internal credit policy to be made to assess the need and repayment capacity of clients before making the loan.
7. 9. The company under no circumstances to breach the total debt limit for any client as prescribed by RBI. Other lending guidelines of RBI to be followed strictly.
8. 10. The Company to ensure that all staff and persons acting on behalf of the company.

• a) Use courteous language, maintain decorum and are respectful of cultural sensitivities during all interactions with clients.
• b) DO not indulge in any behaviour that in any manner would suggest any kind of threat or violence.
• c) Do not contact clients at odd hours, as per RBI Guidelines for loan recovery agents.
• d) Do Not visit clients at inappropriate occasion such as bereavement, sickness etc. to collect their dues.
• e) The company to scrupulously follow the code of conduct for credit officers as communicated by circular no HO/HR/Field dated 16.05.2011.

1. 11. The company to provide a valid receipt /acknowledgement for each and every payment received from the borrower.
2. 12. The company to keep personal client information strictly confidential .Client information may be disclosed to the third party if it is legally required to do so or the client has informed about such disclosure and permission has been obtained in writing.
3. 13. The company to have a formal governance system that is transparent and professional and adapt the best practice of corporate governance by broad basing the board of Directors by inducting persons with good and sound reputation as members of board .
4. 14. The company to ensure transparency in the maintaince of books of accounts and reporting/presentation and disclosure of financial statements by qualified auditors.
5. 15. The company to put in best effort to follow the audit and assurance standard issued by the Institute by CharteredAccountant of India.
6. 16. The company to help a free and fair recruitment practice as prevalent in the Industry.
7. 17. The company to have a dedicated process to raise clients awareness of the options choices and responsibilities via-a-vis financial products and services available. The company to also ensure regular checks on client awareness and understanding of the key terms and condition of the product/services offered.
8. 18. The company to agree to share complete client data with all RBI approved Credit bureaus, as per the frequency of data submission prescribed by the credit bureaus.
9. 19. The company to establish a dedicated feedback and grievance redressal mechanism and to inform clients about the existence and purpose of this mechanism and how to access them.
10. 20. The company to designate grievance redressal official with his /her address /contact details.