Compliance
Ensuring transparency, borrower protection, and fully responsible lending in line with all RBI Microfinance Guidelines.
Fair Practice Code (FPC)
Nirapad Micro Service Foundation strictly follows RBI’s Fair Practice Code to maintain ethical operations and ensure borrower protection.
Core Principles of Our Fair Practice Code
1. Transparent Loan Terms
All charges, interest, instalments, and conditions are clearly explained before loan approval.
2. Key Fact Statement (KFS) Provided
Borrowers receive a KFS, sanction letter, repayment schedule, and all documents before disbursement.
3. Clear Communication
Loan details are explained in simple, easy-to-understand language.
4. Respectful Staff Behaviour
Client Officers follow a strict code of conduct—professional, polite and responsible at all times.
5. No Coercive Recovery
Zero tolerance for harassment, verbal pressure, threats, or public humiliation.
6. Customer Protection First
Borrower rights and safety come before business interests.
7. Right to Information
Borrowers may request statements or documents anytime.
8. Pre-Disbursement Orientation
Borrowers receive group training on repayment rules and meeting discipline.
Grievance Redressal Mechanism
NMSF maintains a multi-level grievance system for quick and fair resolution of borrower issues.
LEVEL 1 – Client Officer
- First point of contact
- Handles service issues, instalment queries and basic concerns
LEVEL 2 – Branch Manager
- Reviews unresolved complaints
- Maintains complaint register
- Provides written acknowledgement
LEVEL 3 – Managing Director
- Handles escalated or serious complaints
- Email: nirapadmsf@gmail.com
- Ensures independent and fair resolution
RBI Escalation (After 30 Days)
If a complaint remains unresolved for 30 days, borrowers may contact the RBI – DNBS (Regional Office). (Details available on the RBI website.)
Unique Grievance Features by NMSF
Complaint Tracking Number
Dedicated Support Number at all branches
Standard Resolution Time: 7–15 days
Monthly grievance review by MD & Compliance Team
Privacy & Data Protection Policy
NMSF protects customer information with strict physical and digital safeguards.
Data Protection Standards
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1. Secure Data Handling: Files stored safely; digital records encrypted.
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2. Minimal Information Collection: Only essential KYC and income details are collected as per RBI norms.
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3. Restricted Access: Only authorized staff (CO, BM, DEO, MD) can access customer data.
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4. No Third-Party Sharing: Data is never shared or sold to outside agencies.
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5. Digital Security Controls: Password protection, device checks, and regular backups.
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6. Customer Consent: Borrowers are informed before document verification and data usage.
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7. RBI-Compliant Storage & Retention: All data handling follows RBI and Microfinance Data Submission guidelines.
Terms & Conditions (T&C)
These terms ensure a responsible and transparent lending relationship.
- Provide accurate information
- Attend meetings regularly (Group Loans)
- Pay instalments on schedule
Documents may undergo home verification, phone checks, or eligibility review.
Loan approval depends on:
- Repayment capacity
- Household income analysis
- Group discipline
- Branch evaluation
Final approval authority remains with the organization.
Timely repayment is mandatory. Missed repayments may:
- Affect future loan eligibility
- Impact group credit discipline
- Trigger responsible recovery follow-ups
- NMSF never gives loans that create over-indebtedness
- Borrowers must disclose all existing loans
- Loan amounts are structured to avoid financial burdens
Additional Compliance Commitments by NMSF
- Staff Code of Conduct displayed in all branches
- Zero Corruption Policy — no unofficial charges
- Regular financial literacy & borrower awareness sessions
- Anti-fraud reporting system
- Internal audits & mystery audits
- Data retention as per government norms
- Transparent file management system at the branch level