What lenders and recovery agents cannot do
The Reserve Bank of India sets clear rules for how banks, NBFCs and their agents must treat borrowers.
RBI Rules on Recovery
Your Rights as a Borrower
Owing money never takes away your rights. If any of these are broken, you can complain.
Contact only from 8 a.m. to 7 p.m.
Recovery agents should contact or visit you only between 8 a.m. and 7 p.m., unless you asked them to come at another time.
No threats, abuse or humiliation
Abusive language, threats, anonymous or excessive calls, public humiliation and intimidation are prohibited, including shaming you before family, friends or colleagues.
Right to know who is calling
Agents must carry an identity card and the lender's authorisation letter. You can ask to see both before speaking to them.
Right to privacy
Lenders should share your details with agents only as much as recovery requires. Posting your details on social media to shame you is prohibited.
Respect in difficult times
Agents should not contact you during a bereavement, medical emergency or other sensitive family occasion.
Grievance details on every notice
Every recovery communication must show the lender's grievance contact details. Use them and keep a record of your complaint.
8 AM – 7 PM
Only hours recovery agents may contact or visit you
30 Days
Time your lender gets to reply before you escalate to RBI
₹0
Cost of filing a complaint with the RBI Ombudsman
14448
RBI toll-free contact centre number
New RBI loan recovery rules for banks
The RBI has tightened its loan recovery framework for commercial banks, with more transparency, stricter checks on recovery agents and compensation for borrowers.
Applies to commercial banks. Small finance banks, payments banks, regional rural banks and local area banks are excluded.
- Recovery agents must be certified by IIBF or an approved institute and background-verified
- Banks must publish their list of empanelled recovery agencies on their websites
- Borrowers must get one day's advance notice before the first in-person visit
- Borrowers must be told if the recovery agency changes
- Financed phones cannot be remotely restricted until 30 days past due; calls, SMS and emergency SOS stay working
- ₹250 per hour compensation for wrongful device restrictions (capped at the loan amount)
Source: Business Today, 6 August 2026. Rights broken? See how to file a complaint.
Make a Difference
Facing loan stress or harassment? Don't suffer in silence. One call to AIFBF can help you understand your rights and your options.