Government And The Financial Market

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The words ‘moneylender’, ‘borrower’, ‘debtor’, ‘creditor’ etc. are commonplace in today’s financial markets. Some other pillars for a powerful economy are stable government, dedicated workforce, the maintenance of internal peace, high GDP, successful industries etc. among others. However, one can consider the government and the financial market as the two foremost pillars on which the economic as well as overall growth of a country rests.
The financial markets play out according to the rules and regulations set forth by the government while the government aims to eke the best it can out of the financial markets for the growth of the nation. Hence, it is often said that the Government of a country and its financial market
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Another significant portion are the students of India, studying in the various colleges and universities spread across our nation. The debts these debtors incur are primarily for the purposes of studying, housing etc. The creditors are usually banks, financial institutions or moneylenders who take securities like mortgages etc. in lieu of the loan given
Upon the expiry of the loan period, the debtors have a duty to repay their creditors in order to redeem their securities. However, it is an unfortunate scenario wherein the repayment cannot be fulfilled by the debtor. It is under such scenarios that the need for debt recovery comes into play.
Debt recovery is the act of identifying a defaulting debtor, establishing contact with him and working in consonance with him to recover the amount due to the creditor. There are debt recovery agencies which specialize in such areas. Sometimes these agencies are just a subsidiary of the entity to which the money is due and sometimes, they are external companies which engage in debt recovery in return for a commission. Some others buy the debts due to a company and then attempt to recover the same on their own accord.
Indian laws currently encompass the field of debt recovery. However, in the past, in the absence of any legislation of any sort to that point, creditors would exploit that lacuna in the law and employ goons to go
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