CODE FOR COLLECTION OF DUES AND REPOSSESSION OF SECURITY

I. Preamble:
This Code for Collection of Dues And Repossession of Security (CDRS Code), is a non-statutory code issued on voluntary basis.

II. Applicability:
This code will apply to Union Bank Of India from 19th January 2004.

III. Contents:
• Introduction
• Dues Collection Policy Statement
• Security Repossession Policy Statement
• General Guidelines
• Grievance Redressal

1. Introduction:
Union Bank Of India is committed to:

• Following fair practices especially with regard to collection of dues and repossession of security

• Fostering customer confidence and long-term relationship.

2. Dues Collection Policy Statement:
• Dignity and Respect to Customers is Union Bank of India's Debt Collection Policy and the Bank do not follow policies that are unduly coercive in collection of dues.

• Union Bank of India's dues collection policy is built on courtesy, fair treatment and persuasion.

3. Security Repossession Policy Statement:
• Union Bank of India's Security Repossession Policy aims at recovery of dues in the event of default and is not aimed at whimsical deprivation of the property.

• The Policy recognizes fairness and transparency in repossession, valuation and realization of security.


4. Guidelines:
4.1. All the members of the staff or any other person authorised to represent Union Bank of India in dues collection or/and security repossession would follow the guidelines set out below:

4.1.1. General:
Before taking action for collection of dues and repossession of security, Bank would give notice to the Borrower asking him to repay the dues and the Borrower will be generally given minimum 15 days time to repay dues.

4.1.2. Guidelines for Collection of dues:
• Customer would be contacted ordinarily at the place of his choice and in the absence of any specified place, at the place of his residence in the case of retail customers and in the place of business or residence as the case may be in the case of other customers.


• Identity and authority to represent would be made known to the customer at the first instance.
• Customer privacy would be respected.
• Interaction with the customer would be in acceptable business language.
• Customer calling time would be between 0700 and 1900 hours unless the special circumstances of the borrower's business or occupation demand otherwise.
• Customer requests to avoid call at a particular time or at a particular place would be honoured as far as possible.
• Time and number of calls and contents of conversion would be documented.
• Customer would be provided with all the information regarding dues at the time of notice of recall of loan and as and when demanded by the Customer.
• All assistance would be given to resolve disputes or differences in a mutually acceptable and in an ordinary manner, if any as regards dues.
• During visits to customers' place for dues collection, decency and decorum would be maintained.
• Inappropriate occasions such as bereavement in the family or such other calamitous occasions would be avoided for making calls/visits to collect dues.
• Demeanor that would suggest criminal intimidation or threat of violence would be scrupulously avoided.

4.1.3. Guidelines for Repossession of Securities:
• Due process of Law would be followed for repossession of securities

• Bank would give one week's notice before taking possession of/siezing securities

• In case Bank engages services of a Recovery/Seizure Agent for repossession of securities then a notice of such appointment will be given to the Borrower.

• Identity of Recovery/Seizure Agent so appointed will be disclosed to you

• Such Recovery/Seizure Agents will have a covenant with the Bank to be bound by this Code.

• Any violation of Code by Recovery/Agent will be viewed seriously and the Bank will take prompt action in preventing the violation.

• Bank would an approved valuer value the securities and ascertain fair market value before resorting to sale.

• Ordinarily Bank would not sell the securities below the fair market value unless the circumstances warrant. In the event of sale of securities being done at a price below the fair market value then Borrower would be given one opportunity to arrange for bidders at or above the fair market value.

• Sale of securities will be conducted only after expiry of 30 days from the date of notice of sale.

• In case the borrower comes forward and reaches a settlment and repays the dues of the Bank, then repossessed securities will be returned within 10 days from the date of satisfaction of dues.

5. Grievance Redressal:


5.1. Internal procedures
a. Staff and the representives engaged for collection of dues and repossession of securities will give assistance in the case customer/borrower wishes to lodge a complaint.
b. Within two weeks of receiving any complaint, we will send a written acknowledgement.
c. After examining the matter, we will send our final or other response within eight weeks.


5.2. Monitoring:
a. Bank has a ‘Nodal Officer’ to ensure compliance of the Code. Bank's internal auditing procedures make sure Bank meest the Code. In the event customer/borrower wants to complain about the violations of the Code, Complaint maygiven to

Principal Code Compliance Officer (PCCO) Planning, Research & Development Department Central Office, Union Bank of India, Union Bank Bhavan, 239, Vidhan Bhavan Marg, Nariman Point, Mumbai - 400 021