RBI proposes draft rules easing loan recovery for borrowers
The Reserve Bank of India (RBI) has proposed draft amendment directions that would come into effect from October 1, 2026, once finalized, to make loan recovery less stressful for borrowers.
These changes will apply to most commercial banks and aim to ensure that people know who's contacting them, get treated respectfully, and aren't caught off guard by aggressive tactics.
Banks to list agencies, notify borrowers
Banks will have to list all approved recovery agencies on their websites and give borrowers a heads-up at least a day before any recovery visit.
Recovery agents can make calls and visits only between 8am and 7pm unless a borrower requests otherwise.
Plus, banks must protect your privacy: banks must not use or access data stored on borrowers' mobile devices for recovery purposes, and any device-function restrictions are subject to limited safeguards-based exceptions.
The RBI wants clear rules so getting back on track with your loan feels safer and more respectful.