SOP Possession Version 2
- 1. Internal document Page 1 of 10 SOP - Possession Details: Process Possession Date 01/30/2018 Version VER 2/Possession/ 0118 Product Movable assets of Retail Products Scope: Broadly defines guidelines for possession criteria, procedure, MIS, asset storage policy, release of possessed asset to borrower on part payment or foreclosure and disposal of asset (release of asset to buyer). This note would be applicable for all movable assets of Retail assets. Includes following processes: 1. Repo kit printing, issuance and storage – For PMT 2. Approval process for Repossession, Repo kit requisition, Repossession, Storage, Valuation & Lost Repo kit documentation. Steps: 1. Repo Kit printing and storage – For Process Management team (PMT) - Central team Sr. No Process Steps FPR Tentative TAT * Deviations if any 1 Check with Projects team for numbering of Repo Kit (in order to align with Repo module in Y - CAPS). PMT T-0 2 Send request for printing Repo Kit to INM team / printer, based on existing arrangement from time to time PMT T-0 3 INM team / Printer to print Repo Kits as per instructions from PMT INM Team/ Printer T-1 to T-20
- 2. Internal document Page 2 of 10 SOP - Possession 4 Receiving of Repo Kit PMT T+20 5 Checking of Repo Kit number PMT T+20 Deviation 1:- In case of discrepancy, the same to be reported to seniors for approval. 6 Update the Repo Kits in Repo Kit register. PMT T+20 7 Storage of Repo Kit, preferably in FRFC. PMT T+20 2. Approval process for Repossession, Repo kit requisition, Storage & Valuation. Sr. No Process Steps FPR Tentative TAT* Deviations if any 1 Post 60 DPD LRN is issued to the customer CP NA 2 Post issuance of LRN, approval to be taken from Collection Head for repossession considering below points : Based on buckets as per product wise matrix in collection manual and feedback, decide the case where possession may need to be done Imp : Please avoid possession if any of below : - Case below 60 DPD. - >90% of loan is repaid - Death case - VVIP / Politically connected / HNI customer - Customer has already filed case against YES BANK SL/ RL As and when required Deviation 2:- In case possession is to still be carried out despite any of the above conditions, then same to be mentioned while seeking approval.
- 3. Internal document Page 3 of 10 SOP - Possession - Escalation cases (Sensitive or Open cases) - Accident / Total loss assets which wouldneed to be towed/ scrapped - High tech equipment which are not supposed to be moved (fixed or installed, such that moving it will damage the equipment) - Loaded vehicles having hazardous / perishable goods 3 Post receipt of approval from collection head, case is allocated to Agency for the purpose of tracing the asset. SL Within 2 days of approval 4 Registration & Hypothecation details to be check as per RTO records online, wherever available. CP/SL Within 2 days of approval Deviation 3:- In case of any mismatch, the same needs to be informed to seniors & approval to be taken to carry out possession. 5 Check for LRN issuance status. If the LRN is not dispatched then initiate the process of LRN issuance. Please await 10 days from date of issue of LRN ( 3 days fordelivery of notice and 7 days period granted to customer for repayment of loan) Post confirmation of registration details matching as per RTO records and issuance of LRN, CP/SL to send request to PMT. CP/SL 10 days from the date of issue of LRN 6 Post confirmation of registration details matching as per RTO records and issuance of LRN, CP/SL to send request to PMT & provide the below details: a. CH approval b. Customer name & loan no, c. Linked Loan no, if any d. Registration no CP/SL
- 4. Internal document Page 4 of 10 SOP - Possession 7 On receiving request, PMT to check following: - DPD of case is same or higher as mentioned in approval - All details matching as mentioned in approval raised to CH - CheckLoanRecallNoticeis issued and more than 10 days from date of letter PMT T+1 Deviation 4: - In case of any parameter details not matching the same needs to be highlighted & deviation approval to be sought by CP/SL from appropriate authority. 8 On confirming fulfilment of all parameterstakeRepoKitandfill all details : - Customer name & agreement no. - Empaneled repo agency (please confirm allocation for repo to that agency in system, whenever available) - Issue date and Expiry date Imp : Please do not issue Repo Kit to any un empanelled repo agency PMT T+1 Deviation 5:- - In exceptional cases, if repo to be done by un empanelled repo agency then prior approval is required from CH. 9 Update Repo Kit no. and issuance details in Repo Kit register. Dispatch the same to requestor. PMT T+1 Deviation 6: - In case of scan Repo Kit issuance, CH approval is required. 10 CP to receive the physical Repo-kit, check all details filled correctly. Send confirmation of Repo Kit received to PMT. SignandstamptheRepoKit before issuing to the Repo agency. Also take acknowledgement on copy &/ in register CP/SL T+2 to 3 Deviation 7:- No possession or surrender to be taken withoutvalidRepo Kit. 11 Track and confirm Repo Kit has been received by CP PMT T+4 12 On tracingtheasset,intimatepolice authorities about the scheduled possession via letter. Take properacknowledgementand signature of the concerned Police officials onthepre-possession letter Repo agency T (Where T is date of repossession) Deviation 8:- Cases where police does not co-operate or accept such letters, letter should be sent by RPAD/ Speed post
- 5. Internal document Page 5 of 10 SOP - Possession 13 Only authorized possession agent should completely fill up inventory sheet to generate an inventory of items and accessories available with the asset at time of possession. Inventory sheets will be in quadruplicate.1st copy is customer, 2nd copy: Stockyard; 3rd copy: Agency copy, 4th copy: office. Collecting original keys, original RC document, permit copies (for commercial vehicles) of possessed asset is highly recommended. Important : - 1. Repo agency to strictly follow the Code of conduct 2. In case there are any valuables kept in the asset, the same to be returned to the borrower/driver on the spot. 3. In case of commercial vehicles which are laden, where ever possible, please ask borrower / consignor / consignee to unload the goods before taking possession. Repo Agency T Deviation 9: - In case of any violence or resistance from customer agency should abandon the possession activity and document the same with Bank officials. 14 Post repossession intimate police about the repossession Repo agency T Deviation 10 :- Cases where police does not co-operate or accept such letters, letter should be sent by RPAD/ Speed post 15 Take the repossessed vehicle to the nearest empanelled yard. Possession intimation to be given to PMT team over mail. Repo agency&/CP a. - T (Within 24 hours of possession) Deviation 11:- In case asset is repossessed far off from any empanelled yard, an un empanelled yard can be opted as a strict exception, provided it meets the minimum criteria and approval to be sought from CH.
- 6. Internal document Page 6 of 10 SOP - Possession Agreement to be signed, KYC of Stock Yard owner to be collected & sent to PMT. 16 Stockyard person to take inventory of asset, match the items and sign on the inventory sheet of the Repo Kit. Acknowledge the copy of inventory sheet of the repo agent , handover their copy & inform to PMT vehicle entry in yard Park the asset at designated area inside the yard. Inward & outward movement of asset to be updatedin the register. Stock Yard Deviation 12: -In case of any mismatch in the inventory sheet & the physical asset, the same needs to be communicated immediately to the central team over mail. 17 Upon receipt of possession intimation from CP, pre- sale notice to be sent to customer. ** Refer Annexure 6. PMT Within T+7 Deviation 13:- Prior confirmation from requisite authority is required for non- dispatch of presale notice. 18 All possessed or surrendered vehicles needs to be valued. Preferable to get valuation of asset by 2 independent govt. certified valuers. The valuation report has to be shared with the Central team and hard copy to be inserted in the repo-kit CP/SL & empaneled Valuer Within T+2 Deviation 14: - CH approvalis required,in case of un-empaneled Valuer. Mandatory to have at least one valuation report. For collaterals above Rs.50 Crores, (irrespective of sanction amount), valuations has to be done by 2 independent valuers 19 Incaseof ladenvehicles,CP/SLhas to inform PMT & provide copy of Lorry receipt, Invoice, etc. through mail. CP/SL T+1
- 7. Internal document Page 7 of 10 SOP - Possession 20 In case of laden vehicles, PMT will checktheLorryreceipt,Invoice, etc. & then issue Consigner– Consignee notice to relevant authorities on their address provided by CP for removal of goods. ** Refer Annexure 5. PMT Within T+7 Deviation 15: - Prior confirmation from requisite authority is required for non- dispatch of notice. 21 Inspection of assets by prospective buyer to be allowed only within official timings of stockyard. i.e., after 9.30 AM and before 6.30 PM. Inspection letter to be issued by CP/SL to prospective buyers. ** Refer Annexure 4. CP/SL & stockyard As and when asset is ready for disposal 22 Post disposal of asset (as covered in SOP for disposal of assets through auctions) Post Sale notice to be issued. ** Refer Annexure 7. PMT. Within 7 days from date of loan closure 23 Please refer to the SOP for auctions for the process of issuance of Release letter to borrower / buyer. ** Refer Annexure 3. Stockyard agency should release theassets only on receipt of asset release memo which should be signed by authorized signatory. Information to be given to PMT over mail for release of asset Outward register to be updated accordingly. CP/SL & Stockyard As and when Buyer comes to yard for taking delivery of asset 24 Details to be tracked by HO for utilized and unutilized Repo Kit as per format. All the utilized Repo Kit along with relevant documents to be sent to PMT within 48 hours of possession. All the expired Repo Kit to be dispatched to PMT team within 48 hours from date of expiry ** Refer Annexure 1. CP/SL T+2
- 8. Internal document Page 8 of 10 SOP - Possession 3. Process for Utilized Repo Kit Sr. No Action step FPR TAT Deviation 1 a. Take copies of Used Repo Kits along with original documents. ** Refer Annexure 1. b. Retain the copy. Preferable to scan and store the images. c. Send the original Repo Kit and documents to Central team CP/AL/SL T 2 PMT to receive the Repo Kit PMT T+1 to 2 3 Once Repo Kit is checked, ensure properfiling andstorage is done of the used Repo Kit and attached documents PMT T+ 4 Deviation 16: - In case of any discrepancy, then the same needs to be published to concern person & resolution needs to be arranged. 4 Post completion of audit all utilized Repo Kits are to be sent to storage vendor as per document retention policy PMT T+4 5 Barcoding & dispatch detail wise file to be maintained for all cases sent to storage. PMT T+4
- 9. Internal document Page 9 of 10 SOP - Possession 4. Process for Unutilized Repo Kit Sr. No Action step FPR Tentative TAT * Deviation 1 If Repo Kit is expired/unutilized, CP/AL/SL to strike off (cancel off) the entire Repo Kit and send the it to central team CP/AL/SL T+2 WhereT is date of expiry of Repo kit 2 Post receiving theRepo Kit,update the Repo Kit register and ensure Repo Kit is cancelled PMT T+3 to 4 3 All cancelled Repo Kit is shredded/purged. Post monthly audit& shredding certificateneeds to be obtained from auditor.- PMT T+5 5. Lost Repo Kit Process: - Sr. No Action step FPR Tentative TAT * Deviation 1 Lost Repo Kit intimation to be given to CP on agency letter head along with FIR copy & indemnity bond on Rs.100 stamp paper. Agency 2 CP/SL will inform to central team for loss of Repo Kit along with FIR copy, indemnity bond on Rs. 100 stamp paper, Lost Repo Kit intimation letter. CP/SL 3 Up on receipt of lost Repo Kit intimation, PMT update the lost Repo Kit tracker & filed the documents in separate Box file. PMT 4 Send the draft of paper publication to MCC team for vetting. PMT 5 Share the vetted paper publication draft with CP for publication. PMT 6 Take monthly CH approval for all lost cases. PMT 7 File paper publication copy along with other documents. PMT
- 10. Internal document Page 10 of 10 SOP - Possession Annexure 1:- Repo documents checklist Annexure 2:- Bid winning Letter format Annexure 3:- Asset Release Letter format Annexure 4:- Vehicle Inspection Letter Annexure 5:- Consigner consignee notice format Annexure 6:- Presale notice format Annexure 7:- Post sale notice format