BAF India

FAIR PRACTICES CODE

Introduction

Pursuant to the Notification issued by the Reserve Bank of India by its Circular No.RBI/2006-07/138 DNBS (PD) CC No.80/03.10.042/2005-06 dated 28th September 2006, BUSSAN AUTO FINANCE INDIA PRIVATE LIMITED (referred to as the “BAF”) has formulated this Fair Practices Code to lay down the following procedures/practices in dealing with the business transactions.

BAF has drafted the guidelines on Fair Practices Code (FPC) for Non Banking Finance Companies which sets the fair practices standards when dealing with individual customers and to serve as a part of best corporate practice. --

1) NON DISCRIMINATION POLICY

It is, and shall be, the policy of BAF to make available to all eligible qualified applicants, without discrimination on the basis of race, caste, colour, religion, sex, marital status, age (between 18 to 60) or handicap all financial products, either directly or through subsidiaries and / or associates. BAF's policy is to treat all the clients consistently and fairly. The employees of BAF will offer assistance, encouragement and service in a fair, equitable and consistent manner. BAF will also communicate its Fair Practices Code (FPC) to its customers by uploading the FPC it on its website. BAF will ensure that the implementation of the FPC is the responsibility of the entire organisation. BAF's fair lending practices shall apply across all aspects of its operations including marketing, loan origination, processing, servicing and collection activities. Its commitment to FPC will be demonstrated in terms of employee accountability, training, counselling, and monitoring,auditing programs and internal controls, and optimal use of technology.

2) KEY COMMITMENTS BY BAF

BAF 's Board of Directors and the management team shall be responsible for implementing the fair practices hereinafter detailed, and also to ensure that its operations reflect its strong commitment to all the stakeholders & customers/borrowers for offering in a fair and equitable manner, the various financial services and products including lending and that all employees are aware of this commitment. BAF is committed to providing service of the highest quality to itsclients
BAF's policy shall be to treat all the customers consistently and fairly. Its employees will offer assistance, and service in a fair, equitable and consistent manner.
BAF shall ensure that charges / fees are appropriately informed to the customer/borrower. Terms and conditions pertaining to the facility will be conveyed to the prospective borrowers.
This Fair Practices Code applies to the all categories of products and services offered by BAF (currently offered or which may be introduced at a future date)
The Fair Practices Code is applicable to the above irrespective of whether the same is provided at the Branch, over the phone, on the Internet or by any other method BAF may be currently using or may introduce at a future date.
The key commitments which BAF promises to follow in its dealings with its customers are:
1. BAF shall act fairly and reasonably in all dealings with its customers by ensuring that:
  1. Its products, services, procedures and practices will meet the commitments and standards in this FPC.
  2. Its products and services will meet relevant laws and regulations as applicable
  3. Its dealings with its customers will rest on ethical principles of honesty, integrity and transparency.
2. BAF will assist customers in understanding how its financial products and services work by
  1. Providing information about them in simple Hindi and/or English and/or the local language
  2. Explaining their financial implications and
  3. Helping the customer choose the one that meets his / her needs.
3. BAF will make every attempt to ensure that its customers have a trouble-free experience in dealing with it; but in the case of errors or commissions and omissions, BAF will deal with the same quickly and sympathetically.
  1. Mistakes will be corrected quickly
  2. Complaints will be handled quickly
  3. In case a customer is not satisfied with the way a complaint is handled, BAF will guide the customer on how to take the complaint forward
  4. BAF will reverse any charges including interest applied to a customer's account due to an error or oversight on its part

3) NON DISCRIMINATION POLICY

BAF will guide its customers in choosing products and services which meets his / her requirements.Before the customer relationship is established, BAF will:
1. Give the customer information explaining the key features of the services in which the customer has shown interest in
2. Give information on accounts, products and services which may suit the customer's needs
3. Clearly state the information that BAF require to collect from the customer to comply with any legal and regulatory requirements in force from time to time.
4. Request for additional information about the customer and his / her family to build a database; but this information may be furnished by the customer only if she / he wishes to do so
BAF will provide information on the its web site and various media that can be used to access its products and services. The customer will also be informed on where further information on this is available.

4) APPLICABILTY

This Fair Practices Code shall apply to the following categories of products and services offered by BAF (currently offered or which may be introduced at a future date)
1. Loans, guarantees and other products in the nature of financial assets.
2. Third party products offered through a network consisting of the branches of BAF, its subsidiaries and associates
  1. Applications for loans and their processing
    1. Loan application forms will include necessary information, which affects the interest of the borrower, so that a meaningful comparison with the terms and conditions offered by other NBFCs can be made and informed decision can be taken by the borrower. The loan application form will indicate the documents required to be submitted with the application form.
    2. The BAF will devise a system of giving acknowledgement for receipt of all loan applications. Preferably, the time frame within which loan applications will be disposed of will also be indicated in the acknowledgement.
    3. Loan Application form will clearly state the information that the BAF requires to collect from the customer informations such as basic terms, tenure,rate of interest, EMI etc to comply with any legal and regulatory requirements. BAF may request for additional information about the customer and his/ her family to build a database; but this information is furnished by the customer only if she / he wishes to do so
  2. Loan appraisal and terms/conditions
    1. The BAF will convey in writing to the borrower by means of sanction letter or otherwise, the amount of loan sanctioned along with the terms and conditions including annualised rate of interest and method of application thereof and keep the acceptance of these terms and conditions by the borrower on its record.
BAF will provide information on the its web site and various media that can be used to access its products and services. The customer will also be informed on where further information on this is available.

5) Disbursement of loans including changes in terms and conditions

The BAF will give notice to the borrower of any change in the terms and conditions including disbursement schedule, interest rates, service charges, prepayment charges etc. BAF will also ensure that changes in interest rates and charges are effected only prospectively. A suitable condition in this regard will be incorporated in the loan agreement.
Decision to recall / accelerate payment or performance under the agreement will be in consonance with the loan agreement.
The BAF will release all colatterals on repayment of all dues or on realisation of the outstanding amount of loan subject to any legitimate right or lien for any other claim company may have against borrower. If such right of set off is to be exercised, the borrower will be given notice about the same with full particulars about the remaining claims and the conditions under which company is entitled to retain the securities till the relevant claim is settled/paid.

6) Confidentiality

Unless authorized by the customer BAF will treat all personal information as private and confidential
Unless authorized by the customer, BAF will not reveal transaction details to any other entity including other than the following exceptional cases:
1. If BAF have to provide the information by statutory or regulatory laws
2. If there is a duty to the public to reveal this information
3. If our interest requires us to provide this information (eg fraud prevention) to Banks / Financial Institutions / Our Group and Associate Companies.
4. BAF will not use this reason for giving information about customers to anyone else for marketing purposes.

7) MARKETING AND PRODUCT SYNERGY

BAF will ensure that all advertising and promotional material is clear, fair reasonable and not misleading.
BAF will provide the customers with a full range of financial products the customer is eligible for. Some of these products / services will be its own; some others may be the products of the group or associate companies and also companies with which BAF may have arrangements with.
It will be the endeavour of BAF to bring synergy between the various financial services, financial products, by cross selling these products to its clientele.

8) GENERAL

The BAF shall refrain from interference in the affairs of the borrower except for the purposes provided in the terms and conditions of the loan agreement (unless new information, not earlier disclosed by the borrower, has come to the notice of the BAF.).
In case of receipt of request from the borrower for transfer of borrowal account, the consent or otherwise i.e. the BAF's objection, if any, shall be conveyed within 21 days from the date of receipt of request. Such transfer shall be as per transparent contractual terms in consonance with law.
In the matter of recovery of loans,the BAF shall not resort to undue harassment viz. persistently bothering the borrowers at odd hours, use of muscle power for recovery of loans, etc.

9) GRIEVANCES REDRESSAL MECHANISM

In case of any complaint/grievance, the applicant/borrowers will have to inform in writing the BAF. The BAF shall immediately take up the matter for redressal.
All disputes arising out of the decisions of BAF in relation to the products and services shall be heard and disposed off .Grievances, if any, in connection with this Code shall be addressed to Mr. Shigeo Enomoto, Chairman BAF on the registered address of the Company or by email to customerservice@bafindia.com.
The Board of Directors will also provide for periodical review of the compliancs of the Fair Practice Codeand the functioning of the GRIEVANCES REDRESSAL MECHANISM at various levels of management . A consolidated report of such views will be submitted to the Board at regular intervals as may be prescribed by it.