reserve Bank of India
The country’s regulatory bank RBI keeps bringing new rules from time to time to provide proper banking facilities to the people. In this sequence, it has made many changes in the rules ranging from prevention of miss selling to loan recovery, the benefits of which will directly benefit you. Recently, RBI has issued new draft rules for loan recovery to make the loan recovery process strict and transparent on behalf of banks.
Banking facilities have increased rapidly in recent years, but in some cases complaints of misbehavior by recovery agents have also increased. In Budget 2026, Finance Minister Nirmala Sitharaman had indicated that steps would be taken to protect the rights of customers. In the same direction, RBI has now released the draft of Second Amendment Directions, 2026. Suggestions have been sought on these proposals and they can be implemented after approval.
Responsibility of banks will be fixed
Under the new provisions, every bank will have to make its own clear and written recovery policy. It will be the responsibility of the bank to identify those who are facing difficulty in paying the installments, explain them to them and provide solutions. Now banks will also make public the list of authorized recovery agents on their website, app and branches so that the borrower knows whether the person in front is authorized or not.
If a customer has filed a complaint with the bank, the case will not be referred to the recovery agent until the complaint is resolved. That means first hearing, then recovery.
Strict monitoring of recovery agents
RBI has also decided the working methods of the agents. They will be able to contact only between 8 am to 7 pm. They have to take full care of the personal life and dignity of the borrower. Calling or harassing relatives, friends or colleagues will be completely prohibited. There will be no contact on sensitive occasions like wedding, mourning or festival.
It will be necessary to give a receipt after every payment. Also, the bank will have to keep a record of how many times and at what time the call was made. The conversation will also be recorded and the customer will be informed about it in advance.
What absolutely will not be tolerated?
Threatening, abusing, trying to defame, putting pressure on social media or giving false legal information. All these have been completely banned. RBI has clearly said that any kind of hooliganism in the name of recovery will not be accepted.
The purpose of these new rules is clear. Banks must recover their money, but within the limits of humanity and law. With this, common people are expected to get relief from mental stress and trust in the banking system will also be strengthened.
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