The RBI, on the other hand, stated that MMFSL may continue to conduct recovery or repossession activities using its own employees.
"The Reserve Bank of India has directed Mahindra & Mahindra Financial Services Ltd. in exercise of its powers under Section 45L(1)(b) of the Reserve Bank of India Act, 1934."
(MMFSL), Mumbai, to immediately cease any recovery or repossession activity via outsourcing arrangements until further orders.
"However, the aforementioned NBFC may continue to conduct recovery or repossession activities through its own employees," it said.
"This action is based on certain material supervisory concerns observed in the said NBFC concerning the management of its outsourcing activities," it added.
According to reports, Hazaribagh police told media that officials from the finance company did not notify the local police station before going to the victim's house to recover the tractor.
According to Mahindra Group's Managing Director and CEO Anish Shah, the incident will be thoroughly investigated.
It also stated that the company will investigate the practise of using third-party collection agencies.