Fair Practice Code for Corporate Deposits and Investments Limited (CDIL)
Pursuant to Reserve Bank of India’s (“RBI”) Circular No. 2006-07 /138 DNBS (PD) CC No. 80 / 03.10.042 / 2005-06 dated September 28, 2006

 

I The loan application and its processing :
  Included information in CDIL’s Application :
 
1 Product information: In order to facilitate meaningful comparison with other NBFCs, CDIL provides comprehensive information about the product/ services offered including the changes in the interest rates, charges, documentation, etc.
   
2 Processing fee/ charges: The Application form indicates fees/ charges for processing the loan application.
   
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Acknowledgment of the Application: CDIL will give acknowledgement of Application’s receipt which shall include a timeframe within which the decision shall be communicated to the applicant.
II Loan Appraisal and Terms/conditions :
  CDIL has a practice of informing all its clients in writing about the sanction or otherwise of their loan application. The sanction letter includes important details like amount sanctioned, rate of interest, tenor and other important terms and conditions. The client has to acknowledge the acceptance of the sanction letter by returning a signed copy to CDIL.
III Disbursement of loans including changes in terms/ conditions :
 
1 CDIL shall conform to the sanction letter’s terms and conditions. CDIL will inform a applicant in writing with sufficient notice of any change to terms and conditions. The changes in interest and other charges will be effected only prospectively.
   
2 Decision to recall/accelerate payment or performance under the agreement shall be in consonance with the loan agreement
3 CDIL shall release all securities on repayment of all dues or on realization of the outstanding amount of loan subject to any legitimate right or lien for any other claim CDIL may have against the borrower. If such right of set off is to be exercised, the borrower shall be given notice about the same with full particulars about the remaining claims and the conditions under which CDIL is entitled to retain the securities till the relevant claim is settled.
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Harassment: CDIL forbids undue harassment for loan recoveries. Its recourse is bound by the law.
IV General :
 

The following CDIL policies are adopted to keep the interest of the borrower as paramount:
 
1 Confidentiality: CDIL maintains applicant information as private/ confidential and shall not part with it unless the applicant’s prior written consent has been sought in this regard, or the information is required to be given by law, or as demanded or required by statutory authorities.
   
2 Refrain from interfering in the affairs of the borrower: CDIL does not interfere in the affairs of the borrower, except for the purposes provided in the terms and conditions of the loan (unless new information, not earlier disclosed by the borrower, has come to the notice of CDIL).
3 Transfer of borrowal account: In case of receipt of request for transfer of borrowal account, either from the borrower or from the bank/ financial institution, which proposed to take over the account, the consent or otherwise would be conveyed within twenty one (21) days from the date of receipt of request. Such transfer shall be as per transparent contractual terms in consonance with law.
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Harassment: CDIL forbids undue harassment for loan recoveries. Its recourse is bound by the law.
V Redressal mechanism :
 

All grievances reported to CDIL shall be assigned to a Compliance officer and reported to the Board. A response will be issued within 15 business days. Report a grievance by writing:
   
  Corporate Deposits and Investments private Limited, 3-6-2/1/, Third Floor, Grandpa’s Royal Mansion, Himayath Nagar, Hyderabad, India – 500 029.
VI Review :
  CDIL will periodically review this Code, including grievance redressal mechanism, to ensure compliance.