No late-night calls, no threats: RBI drafts new recovery rules
The Reserve Bank of India (RBI) just dropped draft rules to make sure banks and housing finance companies treat people fairly when recovering loans.
The big changes? Borrowers must be told exactly who's handling their case—via SMS, email, or letter—and banks have to keep updated lists of all recovery agents on their websites and in branches.
Recovery agents must have a certificate from IIBF
The draft guidelines, issued on Feb 12, 2026 and open for comments until Mar 6, propose that recovery agents should have a certificate from the Indian Institute of Banking and Finance or an institute tied up with IIBF, with a targeted effective date of July 1, 2026 once finalized.
The draft says that where a borrower has lodged a grievance, the bank shall not forward that particular recovery case to an employee/recovery agent until the grievance is disposed of, though the bank may continue recovery if it concludes the complaint is frivolous.
The draft proposes banning aggressive tactics: no abusive language, no late-night calls (only between 8 am-7 pm), no harassing friends or family, and no empty legal threats.
Banks can only take legal steps after sending written notice
Banks can only take legal steps after sending a written notice—no more jumping straight to lawsuits.
Loan agreements will also have clear contact info for complaints, so it's easier for borrowers to get help if things go wrong.
You can actually send feedback on these draft rules until March 6, and if all goes well, the final version kicks in from July 1, 2026.