Fair Practice Code

Introduction

Pursuant to Reserve Bank of India (RBI) Circular DNBS.CC.PD.NO.266/03.10.01//2011-12 dated 28th Day of September 2006, issued to Non-Banking Financial Companies (NBFCs), the Board of Directors of the company have adopted a Fair Practices Code.

Further, RBI vide Circular DNBS.CC.PD.No.266/03.10.01/2011-12 dated 26th Day of March 2012, Master Circular RBI/2013-14/42 DNBS (PD) CC No.340 / 03.10.042 / 2013-14 dated July 1, 2013 and RBI/2015-16/16 DNBR (PD) CC.No.054/03.10.119/2015-16 dated July 1, 2015 had amended guidelines on Fair Practices Code for NBFCs and accordingly suitable modifications are made hereunder in the Code to comply with the aforesaid guidelines.

The Fair Practices Code (hereinafter called as ‘FPC’ or ‘Code’), as adopted herein below, is in conformity with the Guidelines on Fair Practices Code for NBFCs as contained in the aforesaid RBI Circular.

Objectives of the Code

• To provide professional, efficient, courteous, diligent and speedy services
• Not to discriminate on the basis of religion, caste, sex, descent in any manner.
• To be fair and honest in any advertisement and marketing of loan products.
• To provide customers with accurate and timely disclosure of terms, costs, rights and liabilities and any other information as regards loan transactions
• To attempt in good faith to resolve any disputes or differences with customers by setting up complaint redressal system within the organization.

Fair Practices Code

The Company's business is 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 Practices Code in its functioning, the key elements of which are as follows:

(i) Applications for Loans and their processing

The Company is a NBFC Factor and offers various financial products including Assignment of receivables, Instalments based working capital loans, PO financing, Daily repayment working capital loans, EMI based working capital loan, among others.

• All communications to the borrower shall be in the vernacular language or a language as understood by the customers of PinCap.
• Loan application forms of the PinCap shall include necessary information which affects the interest of the borrower, so that a meaningful comparison can be made and informed decision can be taken by the borrower.
• The Loan application form also indicate all the documents required to be submitted with the application form.
• PinCap also has the mechanism for giving an acknowledgement for receipt of Application form to its Borrower for availing loans and also inform prospective Borrower about its decision within reasonable period of time from the date of receipt of all the required information in full.

(ii) Loan appraisal and terms/conditions

PinCap shall convey in writing to the Borrower by way of a sanction letter or schedule forming part of agreement which would be in vernacular language or English as it is understood by all the borrowers of the Company. The sanction letter/Schedule shall contain following information:

• Sanctioned Loan Amount
• Term of the loan
• Rate of Interest/Discounting Rate of Interest
• Processing Fees
• Overdue Rate of Interest (Except overdue rate of interest PinCap do not levy any penal charges for any default in repayment). This overdue rate of interest in mentioned in bold in the sanction letter always
• NACH/Cheque Bounce charges
• Security Required

(iii) Disbursement of Loans including Changes in Terms and Conditions

• PinCap shall give 15 days’ notice in English as understood by the customers any change in the terms and conditions including disbursement schedule, interest rates, service charges, prepayment charges etc.
• Any of the change as specified above shall be effected prospectively.
• A suitable condition in this regard shall be incorporated in the loan agreement, as applicable.
• Any Decision to recall / accelerate payment or performance under the agreement should be in consonance with the loan agreement and a proper notice shall be served to the customers on their communication address as specified in the Loan Agreement.
• PinCap 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 the company may have against borrower. If such right of set off is to be exercised, the borrower shall be given notice about the same with full about the remaining claims and the conditions under which PinCap is entitled to retain the securities till the relevant claim is settled/ paid.
• All communication like acceptances (including for amendments or addendum) with the Customer in relation to the sanction / facilities / loan / mandate / proposals shall be in writing and preserved for a minimum period of ten years in both hard and soft form.

(iv) General

• PinCap shall refrain itself from any 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).
• In case of receipt of request from the borrower for transfer of borrower account, the consent or otherwise - i.e., objection of the Company, if any - shall be conveyed to the borrower within 21 days from the date of receipt of any request. Such transfer shall be as per transparent contractual terms in consonance with law.
• In the matter of recovery of loans, the Company has not resorted to any harassment - such as persistently bothering the borrowers at odd hours, use of muscle power for recovery of loans, etc. The company shall ensure that the staffs are adequately trained to deal with the customers in an appropriate manner.
• PinCap do not charge any foreclosure charges/pre-payment penalties on all floating rate term loan sanctioned to individual borrowers.

(v) Responsibility of Board of Directors

The Board of Directors of PinCap has laid down grievance redressal mechanism within the organization. Such a mechanism ensures that all disputes arising out of the decisions of the Company’s functionaries are heard and disposed of at least at the next higher level.

The Board of Directors of PinCap shall annually review the compliance of the FPC and the functioning of the above redressal mechanism. A consolidated report of compliance shall be submitted to the Board every year.

(vi) Grievance Redressal Mechanism (GRM)

The Board of Directors of PinCap has laid down the appropriate grievance redressal mechanism as specified in the Master Directions of the RBI within the organization to resolve disputes arising in this regard.

Such a mechanism ensures that all disputes arising out of the decisions of the company are heard and disposed off at least at the next higher level.

The customer shall be informed of the customer complaint process / GRM adopted by PinCap at the time of the disbursement of the loan.

Customers who wish to provide feedback or send in their complaint may use the following channels between 9:30 am and 6:00 pm, from Monday to Friday (except on national holidays).

• Call our customer service number - 81301195773, or
• Email us at support@pincap.in, or
• Write to us at - Pinnacle Capital Solutions Private Limited 2nd Floor, Plot No. 100, Sector-43, DLF Phase – 5, Gurugram, Haryana - 122009

In case the complaint is not resolved within the given time or if he/she is not satisfied with the solution provided by PinCap, the customer can approach the Grievance Redressal Officer. The name and contact of the Grievance Redressal Officer is as follows:

Mr. Shivam Karotiya

Tel. No.: +918130195773

Email Id: support@pincap.in

In case the response received through the above channels are not satisfactory, they can write to the Head of our Grievance Redressal Cell at: shivank@pincap.in

We assure a response to letters / emails received through this channel within 10 working days.

If the complaint/dispute is not redressed within a period of one month, the customer may appeal to the Officer-in-charge of the Regional Office of Department of Non-Banking supervision of the RBI, under whose jurisdiction the registered office of the PinCap falls:

DNBS (Department of Non-Banking Supervision), Patna
South Gandhi Maidan, Patna – 800 001, Bihar, India

(vii) PinCap has the displayed the following details in all its offices:

• Appropriate arrangement for receiving complaints and suggestions.
• Three level procedure for resolution of the complaints.
• Display of the name, address and contact number of the Grievance Redressal Officer

The process of the grievance redressal mechanism will ensure closure of all complaints to the customers’ satisfaction.

They will ensure that the complaint is escalated to the appropriate levels in case it is not possible to resolve at his/her level. Whilst the ultimate endeavor is to ensure we reach a situation where our customers don’t have to complain to senior management to get an effective redressal, we have put in a robust mechanism to handle these complaints, review them from a point of view of understanding reasons for the complaint and for the escalation and working on prevention of recurrence thereof.

(viii)Language and mode of communicating Fair Practice Code

FPC as approved by the Board and based on the guidelines prescribed by RBI shall be put in place by the Company. This code shall be put up on the website of the Company for the information of various stakeholders.

(ix) Regulation of excessive interest charged

• The Board shall adopt an interest rate model taking into account relevant factors such as cost of funds, margin and risk premium and determine the rate of interest to be charged for loans and advances.
• PinCap shall disclose to the borrower the risk and rationale for charging different rate of interest to different categories of borrowers in the application form and explicitly communicated in the sanction letter.
• The rate of interest being charged by PinCap shall be annualized rate to make the customer aware of the exact rates that would be charged to the account.

(x) Complaints about excessive interest charged

The Board of the PinCap has devised an appropriate internal principles and procedures in determining interest rates and processing and other charges keeping in view the terms and conditions of the Fair Practices Code.

(xi) Repossession of the vehicles financed by applicable NBFCs

PinCap does not provide any vehicle financing facility.

(xii) Lending against collateral of gold jewellery

PinCap does not lend against collateral of gold jewellery.