RBI got tough on debt recovery agents, now they will not be able to harass customers, new instructions issued

RBI has also asked borrowers to refrain from sending any kind of inappropriate messages, threatening or calling from unknown numbers. Whereas now the recovery agent can call for loan only during day time.

RBI gets tough on debt recovery agents

The Reserve Bank of India (RBI) on Friday issued fresh instructions to the recovery agents saying that they cannot call borrowers before 8 am and after 7 pm. RBI Issuing a notification to this effect, the RBI said that banks, non-banking finance companies (NBFCs) and asset reconstruction companies (ARCs) should ensure that its instructions regarding recovery of loans are properly followed. “It is advised that the regulated entities shall strictly ensure that they or their agents refrain from harassing or abetting the borrowers in any manner during the recovery of outstanding loans,” the RBI said.

No call to borrowers late night or early morning

Apart from this, the RBI has also asked the borrowers to refrain from sending any kind of inappropriate messages, threatening or calling from unknown numbers. According to RBI, recovery agents cannot call borrowers before 8 am and after 7 pm. RBI has been issuing guidelines from time to time on issues related to recovery of loans. It had earlier also said that regulated entities should not harass or harass borrowers. But in view of the unfair activities being done by the recovery agents in recent times, RBI has issued a new guideline. The central bank has said that these guidelines will be applicable to all commercial banks, co-operative banks, NBFCs, ARCs and all-India financial institutions.

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Action after receiving complaints continuously

In fact, the Reserve Bank was continuously receiving complaints that the recovery agents were putting undue pressure on the customers to recover the dues. Due to pressure on income or job loss during Kovid, many people were unable to repay the loan installments on time, after which the recovery agent pressurized to get the money back. Due to which the condition of many people became more serious. In view of all these incidents, the Reserve Bank has issued guidelines to the recovery agents to stay within the rules.