EconomicsSource: The Hindu
RBI Issues Draft Guidelines Regulating Recovery Agents
Saturday, 14 February 2026
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The Reserve Bank of India (RBI) has introduced draft guidelines regulating recovery agents in the banking sector, effective from July 1, 2026. These guidelines prohibit abusive practices and mandate banks to establish formal policies to ensure responsible conduct and protect borrowers' rights.
Detailed Coverage
- RBI issues draft guidelines for recovery agents.
- Effective from July 1, 2026.
- Prohibits abusive language and threats.
- Bans excessive or anonymous calls.
- Restricts contact outside prescribed hours.
- Prevents public humiliation of borrowers.
- Intimidation and harassment are deemed harsh practices.
- False representations about debts are prohibited.
- Banks must create a formal recovery policy.
- Policy to include eligibility criteria and due diligence norms.
- Must establish a code of conduct for recovery agents.
- Specify activities and performance standards for agents.
- Dedicated mechanism for handling complaints is mandatory.
- Guidelines aim to enhance accountability of recovery agents.
- Intended to protect borrowers from unfair practices.
- Supports responsible business conduct in the banking sector.
Economics