RBI delays updated loan recovery guidelines to January 1 2027
The Reserve Bank of India (RBI) has delayed its updated loan recovery guidelines until January 1, 2027, giving banks more time to adjust.
These rules are all about making sure borrowers are treated fairly and respectfully during the recovery process, and they specifically don't apply to bank employees.
RBI limits recovery agents' conduct
Recovery agents can't use abusive language, call repeatedly, or reach out during tough times like family emergencies.
Banks will have to clearly share complaint contacts in loan papers and notices from January 1, 2027.
Agencies must properly check their agents before hiring and keep an eye on them with regular checks.
The RBI also clarified that these rules cover agents handling things like collections or repossessions, but not those just collecting regular installments.
For microfinance loans, recoveries need to happen at locations agreed on by both sides.