INTRODUCTION

The Fair Practice Code (FPC) aims to provide its borrowers an effective overview of the practices followed by the Company and to enable borrowers to take informed decisions in respect of the financial facilities and services offered by the Company. The Code covers the general principles on adequate disclosures on the terms and conditions of the loan and the procedures to be followed when dealing with the borrowers.

mPokket Financial Services Private Limited (“MFSPL” or “the company”) is a company incorporated under the provisions of the Companies Act, 2013. It is categorized as a Non-Systemically Important Non-deposit taking NBFC.

The Company has incorporated the FPC guidelines issued by the Reserve Bank of India (RBI) vide its Circular dated September 28, 2006 as  modified from time to time. The same now stands superseded by the Master Direction – Non-Banking Financial Company –Non- Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016 issued by the RBI on 1st September 2016, as last updated on 22nd  July 2022. Accordingly, to ensure compliance with the directions of the Bank, the Code duly approved by the Board of Directors is adopted for implementation.

OBJECTIVES

The code has been developed with an objective:

1. To promote good, fair and trustworthy practices by setting minimum standards in dealing with customers.
2. To enable greater transparency for customers in having a better understanding of the product, taking informed decisions and reasonably expect of the services.
3. To ensure compliance with legal norms in matters relating to recovery of advances.
4. To ensure building customer confidence in the Company.
5. To promote a fair and cordial relationship between customer and the Company.
6. To strengthen mechanisms for redressal of customer grievances.

FAIR PRACTICE CODE

The Company’s business would be conducted in accordance with prevailing statutory and regulatory requirements, with due focus on efficiency, customer-orientation and corporate governance principles. In addition, the Company would adhere to the Fair Practice Code in its functioning, the key elements of which are as follows:

Applications for loan and their processing

Loan application forms shall 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 the borrower can take an informed decision. The loan application form shall indicate the documents required to be submitted with the application form. All communications to the borrower shall be in the vernacular language or a language as understood by the borrower.

MFSPL shall devise a system of giving acknowledgement for receipt of all loan applications. The Company will consider all the documents submitted and the information provided, verify the credit worthiness of the customer which will be an important parameter for taking decision on processing of the loan application and evaluate the proposal at its sole discretion, in line with the Company’s internal policies, norms and procedures in respect thereof. In general and as a matter of policy & customer service, loan applications are sanctioned / rejected immediately.

Loan Appraisal and Terms/Conditions

All communications to the borrower will be in vernacular language or a language as understood by the borrower. MFSPL shall convey in writing to the borrower in English language as understood by the borrower by means of Key Fact Statement, Loan Agreement and sanction letter or otherwise indicating the amount of loan, annualized percentage rate  as applicable, along with the terms and conditions including amount of interest, fees and charges, overdue interest, tenure of loan, commencement date, repayment installments, repayment date etc. and shall keep the acceptance of these terms and conditions by the borrower on its record.

MFSPL would verify the loan applications within a reasonable period of time and if additional details / documents are required, it would intimate the borrowers immediately.

MFSPL shall furnish copy of digitally signed loan agreement in the language as understood by the borrower along with a copy each of all enclosures quoted in the loan agreement to all the borrowers at the time of disbursement of loans. Upon execution of the loan contract MFSPL shall share the digitally signed documents supporting important transactions through “mPokket” the digital lending app such as KFS, loan application form, sanction letter, terms and conditions,  privacy policies of the Lending Service Provider’s with respect to borrowers’ data to the registered email/ SMS of the borrower.

It shall mention the penal interest charged for late repayment in bold in the loan agreement and Sanction Letter.

Disbursement of Loans including Changes in Terms and Conditions

At MFSPL, we values openness and transparency in the system. The Company shall keep the customers informed in the language as understood by the borrower, in the event of any modification in terms and conditions – including disbursement schedule, interest rates, penal interest, service charges, prepayment charges etc. and other changes material to customer’s relation with MFSPL. Any changes in interest rates and charges shall be effected only prospectively and would be given favourable notice. A suitable provision in this regard would be incorporated in the loan agreement.

General

Non-Interference:

The Company shall refrain from interference in the affairs of the borrower except for the purposes provided for 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 Company).

Recovery Process:

If any recovery proceedings need to be initiated, these shall be conducted in accordance with the company’ polices and rights provided under the Agreement and also in accordance with legally accepted norms. MFSPL staff or any person authorized to represent the Company including the Lending Service Provider “LSP” in collection of dues shall identify himself / herself. The Company or authorised representative shall provide the customers with all the information regarding overdue. In the matter of recovery of loans, the Company, its agents and its LSP shall ensure that they  do not resort to intimidation or harassment of any kind, either verbal or physical, against any person in their debt collection efforts, including acts intended to humiliate publicly or intrude upon the privacy of the borrowers’ family members, referees and friends, sending inappropriate messages either on mobile or through social media, making threatening and/ or anonymous calls, persistently calling the borrower and/ or calling the borrower before 8:00 a.m. and after 7:00 p.m. for recovery of overdue loans, making false and misleading representations, etc.. The Company shall ensure that the staff is adequately trained to deal with the customers in an appropriate manner.

Foreclosure charges/ Pre-payment penalties on floating rate term loans:

As a measure of customer protection and to bring uniformity with regard to pre-payment of loan, the company shall not charge foreclosure charges/ pre-payment penalties on all floating rate term loans sanctioned to individual borrowers.

Grievance Redressal Officer

Company has adopted Board approved Grievance Redressal Policy and the same is available at its website www.mpokket.com. The name and contact details of the Grievance Redressal Officer (GRO) of the Company as given below and shall be prominently displayed at the offices/branches of the company where the business is transacted:

If the grievances / complaints are not redressed within a period of one month, the customer may appeal to the Officer-in-Charge of the Regional Office of DNBS of RBI at 15, Netaji Subhash Road, Kolkata-700 001 STD Code: 033- 22304982.

Company ensures that it and the LSPs’ engaged by it shall have a suitable grievance redressal officer to deal with digital lending related complaints/ issues raised by the borrowers. Such grievance redressal officer shall also deal with complaints against their respective DLAs. Contact details of such officers shall be displayed on the website of the Company, its LSPs and on DLAs prominently and also in the KFS provided to the borrower. Further, information on the mode of lodging complaint shall also be available on the DLA and on the website. It is reiterated that responsibility of grievance redressal shall continue to remain with the Company. 

CONFIDENTIALITY

Unless authorized by the borrower, the Company will treat all his personal information as private and confidential. The Company may not reveal transaction details of the borrowers to any other persons except under following circumstances:

• If the Company is required to provide the information to any statutory or regulatory body or bodies.
• If arising out of a duty to the public to reveal the information.
• If it is in the interest of the borrowers to provide such information (e.g. fraud prevention);
• If the borrower has authorised the Company to provide such information to its group / associate/ entities or companies or any such person/ entity as specifically agreed upon.

KNOW YOUR CUSTOMER GUIDELINES

MFSPL shall explain the requirements of KYC guidelines to its customers and inform them about the documents required for establishing the identity of the customer before loan sanctioning, account opening and operation.

It would obtain only such information to meet with company’s KYC, Anti-Money Laundering or any other statutory requirements. In case any additional information is asked for, it will be sought separately and shall specify the objective of obtaining such additional information.

INTEREST CHARGED:

To ensure that the Customers are not charged excessive interest rate and charges on loans and advances by the company, the Board of the company has adopted a Policy for determining Interest Rates, Processing and Other Charges, “Interest Rate Policy” and the same has been put up on company’s web-site.

The Company had laid down appropriate internal principles and procedures in determining interest rates and processing and other charges.

The Company would adopt an interest rate model taking into account relevant factors such as, cost of funds, margin and risk premium, etc. and determine the rate of interest to be charged for loans and advances.

WIDE DISSEMINATION AND PERIODIC REVIEW

The Company shall put the above Fair Practice Code outlined hereinabove on its web site, for the information of various stakeholders. The Company would also review and refine the Code, as may be required periodically – based on its own experience and fresh guidelines, if, any, to be issued by the RBI in this regard.

The Board of Directors shall review the compliance of the Fair Practice Code annually and quarterly review of  functioning of the grievance redressal mechanism of the company at various levels of management shall be done by Board. A consolidated report of such reviews shall be submitted to the Board at regular intervals.