Policies

Sewa Grih Rin Limited (hereinafter referred to as “SITARA” or “Company”) has adopted KYC guidelines as per the applicable extant NHB Guidelines on ‘Know Your Customer’ & ‘Anti Money Laundering measures’ for HFCs. The amendment to the National Housing Bank Act, 1987 which came into force w.e.f. August 09, 2019 conferred Reserve Bank of India (RBI) with certain powers for regulation of Housing Finance Companies (HFCs). The RBI had issued comprehensive guidelines on Know Your Customer (KYC), Anti-Money Laundering (AML) and combating the Financing of Terrorism (CFT) vide Master Direction- Know Your Customer (KYC) Direction, 2016 applicable to all Regulated Entities of the Bank. This Master circular was extended by RBI to all Housing Finance Companies vide RBI/2019- 20/235 DOR.NBFC (HFC). CC. No.111/03.10.136/2019-20 dated May 19, 2020. Subsequently, RBI vide circular dated February 17, 2021 re-iterated applicability of the above Master Direction - Know Your Customer (KYC) Direction, 2016 in the Master Direction – Non-Banking Financial Company – Housing Finance Company (Reserve Bank) Directions, 2021. In view of the same, the Company has ensured that a proper policy framework on KYC and AML measures is formulated in line with the prescribed RBI guidelines as amended from time to time, and put in place after duly approved by its Board of Directors

SEWA Grih Rin Ltd. (SGRL), is a low-income housing finance Company focused on providing access to Housing Finance to poor women and their families engaged in informal sectortrades. Considering the marketsegment, the Company caters to, itisimperative to make customer service and customer protection central to its entire operations. Most importantly, the Company believes that customer service is an important tool for sustained business growth. Prompt and efficient service is essential to retaining existing relationships and nurturing new ones. Therefore, the Company accords high priority to customersatisfaction.

In terms of paragraph 4.3 of Annex 4 of Master Circular- Housing Finance Companies – Corporate Governance (NHB) Directions, 2016, all non-public deposit accepting Housing Finance Company with assets size of 50 crore and above, as per the last audited balance sheet are required to disclose the policy on dealing with Related Party Transactions on its website and also in the Annual Report. This policy shall also be disclosed by the Company in the Annual Report besides being made available on the website of the Company. The assets size of SEWA Grih Rin Limited has exceeded INR 50 crores. Hence, the Company is required to follow these directives.

This document has been prepared considering the mandated list of policy documents as required by National Housing Bank.
While drafting this document the guidelines, regulations and circulars periodically issued by The Reserve Bank of India have been followed which require banks to maintain the confidentiality and privacy of customers. The Master Circular on Customer Service in banks issued in 2009 contains a detailed clause on Customer Confidentiality Obligations. The clause reaffirms the customary banking obligation of secrecy and extends it by forbidding the usage of customer information for “crossselling purposes”. It imposes a restriction on data collection by requiring Banks to “ensure that information sought from the customer is relevant to the perceived risk”.

The Code is a guide to professional conduct for Independent Directors. Adherence to these standards by independent directors and fulfilment of their responsibilities in a professional and faithful manner will promote confidence of the investment community, particularly minority shareholders, regulators and companies in the institution of Independent Directors.

SEWA (Self Employed Women’s Association) Grih Rin Ltd (SGR) was incorporated on 18th July 2011 under the Company’s Act 1956 with a specific purpose of becoming a Housing Finance Company (HFC) to provide housing finance for the poor. The SGRL mission is to finance access to decent housing and sound living environments for and with participation of poor women and their families in the informal sector.

Section 177 of the Companies Act, 2013 mandates the following classes of Companies to constitute a Vigil Mechanism/ Whistle Blower Policy for the directors and employees to report genuine concerns or grievances about unethical behaviors, actual or suspected fraud or violation of Company Code of conduct or ethics policy.

This document provides details of the practices which need to be followed by the Company to ensure fair and transparent dealings with its customers who approach it for obtaining a loan and for transactions with customers after the loan has been granted. This code will enable employees to provide better customer service and maintain transparency in business dealings with its customers. This code has been drafted in accordance to the Reserve Bank of India (RBI) guidelines on Fair Practices Code for Housing Finance Companies setting standards for fair business and corporate practices while dealing with their customers (Circular No. RBI/2020-21/73 DOR.FIN.HFC.CC.No.120/03.10.136/2020-21 dated February 17,2021. The Code has the following key elements.

In order to comply with the Reserve Bank of India (RBI) circular no. RBI/2021-2022/125 dated 12th November, 2021 on IRACP (Income Recognition, Asset Classification and Provisioning pertaining to Advances) norms on consumer education, all financial institutions are required to place Consumer Education Literature on their websites as well as notice board for increasing awareness among consumers w.r.t concepts of overdue, Special mention accounts (SMA) and Non-Performing Assets (NPA) classification and upgradation. Accordingly, the same has been detailed out for your ready reference.

The current Floating Reference Rate (FRR) of SEWA Grih Rin Limited is 20.99%