Untitled Document

The Fair Practices Code (FPC) adopted by the Canbank Factors
The Fair Practices code (FPC) is a voluntary code adopted by our Company with an aim to achieve
uniform and best practices while dealing with the factoring clients.
It is to ensure that important inputs are provided to the clients and to have better interactions
of the clients with the company.

Code No
1.	The Canbank Factors would have the factoring facility application form containing information about the fees / charges payable for processing, the amount of such fees refundable in case of non-acceptance of the application, pre-payment options, etc., so that a meaningful comparison with that of other factoring companies can be made by the prospective clients to enable them to take informed decisions. Further, the documents required to be submitted by the client are furnished in the application.
2.	The Canbank Factors would give acknowledgement for receipt of all factoring facility applications.
3.	The Canbank Factors would dispose off the factoring facility application upto Rs Rs 30 lacs containing full information / details / documents within 7 days; proposals above Rs 30 lacs and upto Rs 500 lacs within 15 days and proposals beyond Rs 500 lacs within 60 days.
4.	The Canbank Factors would verify the factoring facility applications within a reasonable period of time. If additional details / documents are required, it would intimate the applicant/s / client/s immediately thereafter.
5.	The Canbank Factors would ensure that there is proper assessment of factoring facility applications submitted by the applicant/s / client/s.
6.	The Canbank Factors would carry out proper due diligence on the creditworthiness of the applicant/s / client/s notwithstanding the stipulation of any security and margin made by it.
7.	The Canbank Factors would make proper assessment of the client’s factoring facility needs in order to take care that the factoring limit/s which are sanctioned meet/s the genuine requirement of such client/s.

8.	The Canbank Factors would convey to the applicant/s / client/s concerned, the factoring limits sanctioned to them along with the terms and conditions thereof and obtain their specific acknowledgement for acceptance of the same for its records. While so conveying, the Canbank Factors would also request the applicant/s / client/s therein to specifically inform the Canbank Factors in writing whether they would need a copy of the factoring agreement along with copies of all the enclosures quoted therein.
9.	While conveying the terms and condition and other caveats governing the Factoring facilities stipulated by the sanctioning authority of the Canbank Factors in writing to the applicant / client, the authority of the Canbank Factors as per whose orders the sanction communication has been released would also be duly indicated therein.
10.	A copy of the Factoring agreement along with copies of all the enclosures quoted therein would be given to the clients concerned by the Canbank Factors wherever specific requests for the same are made by them in response to the sanction communication addressed to them.
11.	In the case of applicant/s / client/s seeking factoring facilities, the Canbank Factors would convey in writing within the time earlier indicated in the acknowledgement given for receipt of the related factoring facilities applications, the reasons/s which have led to the rejection, if any, thereof.
12.	Allowing drawings beyond sanctioned limit, disallowing drawings on a prepayment account on its classification as a non-performing asset or on account of non-compliance with the terms of sanction etc., would be solely at the discretion of the Canbank Factors. Again, the Canbank Factors does not have an obligation to meet additional requirement/s of client/s on account of growth in business etc. without the proper review of the factoring limits of such clients.
13.	The Canbank Factors would ensure timely disbursement of prepayment sanctioned in conformity with the terms and conditions of sanction.
14.	The Board of Directors will decide the MROD (Minimum Rate of Discount) and Factoring Charges from time to time depending on the market conditions/cost of funds. The Canbank Factors would give the notice of any change in the terms and conditions to the clients concerned. In respect of discount rates and factoring charges etc., the Canbank Factors would give notice to the borrowers any change in discount rate / factoring charges. The Canbank Factors would also ensure that changes in rate of discount charges and factoring charges are effected only prospectively.
15.	Before taking a decision to recall under the agreement or seeking additional securities, the Canbank Factors would give reasonable notice to the clients concerned which would be in consonance with the factoring agreement.

16.	The Canbank Factors would release all securities on receiving payment of Factoring liabilities subject to any legitimate right or lien for any other claim, the Canbank Factors may have against clients. If such right of set off is to be exercised, the client would be given notice about the same with full particulars about the remaining claims and the documents under which the Canbank Factors is entitled to retain the security till the relevant claim is settled / paid.
17.	The Canbank Factors in the normal course would endeavour not to interfere in the affairs of its clients which are not either directly or indirectly related in its extending the factoring facilities unless new information not earlier disclosed by the clients concerned has come to the notice of the Canbank Factors.
18.	The Canbank Factors will not discriminate on grounds of sex, caste and religion in the matter of extending factoring facilities. However, this does not preclude the Canbank Factors from participating in schemes framed for giving impetus like SME segment etc.
19.	In the matter of recovery of factoring facilities, the Canbank Factors would not use any muscle power.
20.	In the case of receipt of request for transfer of client’s accounts either from such clients or from the banks / FIs / NBFCs which propose to take over the accounts, the consent or otherwise of the Canbank Factors, would be taken up by the branch concerned with concerned authority within 7 days of receipt of such requests and the latter would communicate decision thereon within 15 days from the date of receipt of the related recommendations from the branch.
21.	The Canbank Factors would have a Grievance Redressal Mechanism within the organisation to resolve disputes, if any, arising in relation to the FPC for lenders where all disputes arising out of the decision of a Canbank Factors functionary falling upto the sanctioning powers of MD are heard and disposed off at least by the next higher authority at Registered Office. In respect of proposals falling under the sanctioning powers of the Committee of Directors, grievances if any, would be redressed only by the said Committee of Directors. Further, the periodic review of grievances would be placed to the Board once in 6 months.