Fair Practice Code

The Fair Practice Code (FPC) has been formulated by Amritham Radhakrishna Nidhi Limited in response to Reserve Bank of India wide circular DNBS.CC.No.340/03.10.042/2013-14 dated July 1, 2013, to ensure better service quality and transparency in its loan process, as well as to provide an effective overview of the company's practises in respect of financial services offered to customers. The revised FPC attempts to improve customer satisfaction while reducing customer complaints.

This Code has been drawn up to:

  • Provide to the customers an overview of policies and practices followed by the Company in respect of financial facilities and services offered by the Company to its Customers;
  • Enable customers to take informed decision about the financial facilities and services offered by the Company;
  • Promote good, fair, transparent and trustworthy practices by setting minimum standards in dealings with customers;
  • Enable customers to have better understanding of what they can reasonably expect of the services offered by the Company;
  • Reckon with market forces, through competition and strive to achieve higher operating standards;
  • Foster fair and cordial relationship between the customers and the Company.

Loan Application and Processing of Gold Loans & Property Loans

  • All communications to the borrower shall be in the vernacular language or a language as understood by the borrower.
  • An acknowledgment for receipt of duly completed loan application forms will be given to the customer in all cases. As a matter of policy and customer service, loan applications are sanctioned / rejected immediately. Disbursement of the loan and acceptance of security will be carried out nearly simultaneously.
  • The application form will clearly state the information to be provided by the customer to fulfill the KYC norms and to comply with legal and regulatory requirements.

Terms and Conditions

  • The company shall disclose all the relevant information regarding the loan/product such as eligible loan amount, Interest rate, charges, penal/overdue interest and method of interest calculation etc of the loan to enable the customer to take an informed decision.
  • The company shall ensure that a loan sanction letter (Pawn Ticket) is given to the customer containing all the terms and conditions governing the loan facility in the local language or other language understood by the customer. The loan sanction letter will also mention the loan amount, number ,interest rate charges, loan processing fee if any etc. The loan sanction letters will bear the signature of the authorized official of the company will also gave a token receipt to the security (gold) pledged at the branch by the customer.
  • There will be notices served to the borrower in the vernacular language as understood by the borrower of any change in the terms and conditions including disbursement schedule, interest rates, service charges, prepayment charges etc.
  • The company shall release all the securities, on getting the repayment of its full dues or on realization of the outstanding amount of loan subject to any legitimate right or lien to any other claim the company may have against its borrowers. It has such rights to set off and if is to be exercised, then the borrower shall be given a notice about the same with full particulars about the remaining claims and conditions under which the company is entitled to retain the securities till the relevant claim is settled/paid.