Fair Practices Code
Our Commitment to Ethical and Transparent Financial Services
Fair Securities Private Limited is committed to maintaining the highest standards of fair practices in all our dealings. This Fair Practices Code has been developed in accordance with RBI guidelines and represents our commitment to transparency, ethical conduct, and customer protection.
Introduction
As a Reserve Bank of India registered Non-Banking Financial Company, we recognize our responsibility towards our customers and the broader financial ecosystem. This Fair Practices Code outlines the principles and standards we follow to ensure ethical and transparent operations.
Objectives
- To promote good and fair practices by setting minimum standards in dealings with customers
- To increase transparency so that customers can make informed decisions
- To encourage market forces through competition to achieve higher operating standards
- To promote a fair and cordial relationship between customers and the company
- To ensure that customer complaints are resolved promptly and fairly
Key Principles
Transparent Disclosure
- •Clear communication of interest rates, processing fees, and all charges
- •Disclosure of terms and conditions in simple language
- •Provision of copies of all loan documents to customers
- •Transparency in penalty charges and their applicability
Non-Discriminatory Practices
- •Equal treatment to all customers without discrimination
- •Fair and objective credit assessment criteria
- •Consistent application of policies and procedures
- •Access to services without bias based on gender, caste, or religion
Responsible Lending
- •Assessment of repayment capacity before loan disbursement
- •Appropriate loan products based on customer needs and profile
- •No over-leveraging or pushing unnecessary products
- •Clear explanation of risks and obligations
Ethical Collection
- •Dignified and respectful recovery practices
- •No harassment, intimidation, or coercion
- •Contact only during reasonable hours (0800-1900 hrs)
- •Privacy and confidentiality of customer information
Customer Protection
- •Secure handling of personal and financial information
- •Clear grievance redressal mechanism
- •Timely response to customer queries and complaints
- •Protection against unfair practices
Application & Documentation
We ensure that:
- All communications and application forms are in simple language
- A copy of the completed application form with acknowledgment is provided
- Time frame within which loan applications will be disposed is communicated
- Reasons for rejection of applications are provided in writing
- All original documents are returned after verification
Loan Appraisal & Terms
Our loan appraisal process ensures:
- Comprehensive assessment of repayment capacity
- Clear disclosure of all terms and conditions
- Information about annualized interest rates and effective cost
- Details of penal interest and other charges
- Loan agreement in vernacular language or language understood by customer
- Copy of loan agreement and all enclosures provided to customer
Disbursement Process
- Timely disbursement of sanctioned loans
- Communication of any delays with reasons
- Proper documentation and acknowledgment
- Clear record of disbursement amount and charges deducted
Post-Disbursement
- Regular statements of accounts
- Advance notice of any changes in interest rates or charges
- Facility to prepay loans with clear prepayment charge disclosure
- No-dues certificate upon full repayment
- Release of securities/documents after loan closure
Recovery & Collection Practices
We strictly adhere to the following in our collection practices:
DO's:
- ✓ Contact customers during reasonable hours (0800-1900 hrs)
- ✓ Maintain dignity and respect
- ✓ Communicate clearly and professionally
- ✓ Provide written notice before initiating recovery proceedings
- ✓ Follow up through authorized recovery agents only
DON'Ts:
- ✗ Use threatening or abusive language
- ✗ Contact at odd hours or repeatedly harass
- ✗ Disclose customer information to third parties
- ✗ Make false or misleading statements
- ✗ Use physical force or intimidation
Customer Grievance Redressal
We have a dedicated grievance redressal mechanism:
- Designated Grievance Officer with contact details displayed prominently
- Acknowledgment of complaints within 3 working days
- Resolution target of 30 days from receipt of complaint
- Clear escalation matrix if customer is not satisfied
- Option to approach RBI Ombudsman if internal redressal fails
Customer Education
We are committed to:
- Providing clear information about financial products
- Educating customers about their rights and responsibilities
- Making this Fair Practices Code available on our website
- Displaying grievance redressal contact information at all offices
Regulatory Compliance
This Fair Practices Code is prepared in accordance with:
- RBI Master Directions for Non-Banking Financial Companies
- Fair Practices Code guidelines issued by RBI
- Consumer protection regulations
- Industry best practices and ethical standards
Contact Information
For Fair Practices Related Queries:
Fair Securities Private Limited
C-5, Lajpat Nagar-III, South Delhi
New Delhi, Delhi 110024
Email: compliance@fairsecuritiespvtltd.com
Phone: +91-11-4567-8900
Board Approval: This Fair Practices Code has been approved by the Board of Directors of Fair Securities Private Limited and is reviewed periodically to ensure continued relevance and compliance with regulatory requirements.