New Delhi. Nowadays it has become easy to take loan, but due to some reasons people are not able to pay the installments on time. In such a situation, lenders take the help of recovery agents to recover the money. Recently, there have been many reports that after failure to repay the loan installment, recovery agents make continuous calls, pressure or threaten. If you are also struggling with this kind of problem then there is no need to panic. The Reserve Bank of India (RBI) has set strict rules related to loan recovery for banks and NBFCs, so that there is no misbehavior with the borrowers. These rules not only protect your dignity and privacy, but also show the way for action against recovery agents who adopt wrong practices.
What can’t recovery agents do?
The guidelines of the Reserve Bank of India clearly say that the recovery process should be civilized and legal. According to this-
- Threats, abuse or intimidation are prohibited.
- Obscene, derogatory or coercive words cannot be used.
- It is against the rules to make frequent phone calls, especially late at night or early in the morning.
- It is illegal to embarrass one at home, office or in front of relatives.
- Threats of violence or confiscation of property are strictly prohibited.
- If any of these are happening, it is a violation of RBI rules.
Call time also fixed
According to RBI, recovery agents can be contacted only between 8 am to 7 pm. Any call made outside this will be considered harassment. Also, it is important for the agent to identify himself and make it clear on behalf of which bank/NBFC he is speaking.
Protecting your privacy
Recovery agents cannot share your personal information (loan details, outstanding amount) with third parties like neighbours, colleagues or relatives. Putting your information on social media, WhatsApp group or public platform is a serious violation.
What is the responsibility of the bank?
According to RBI rules, even if the recovery agents are third parties, the responsibility for their actions lies with the bank/NBFC. Therefore, the bank has to ensure that the agents are given proper training. They follow the code of conduct. On receipt of complaint, immediate investigation and action should be taken.
What to do if you are harassed?
1. Gather evidence- Keep call recordings, messages, WhatsApp chats or witnesses, whatever is possible, safe.
2) First complain to the bank/NBFC – customer care, email or lodge a written complaint.
Make sure to take the complaint number (ticket/reference).
3) Complaint to RBI if solution is not found – Complaint can be filed online through RBI’s Complaint Management System (CMS). The bank has to respond within the stipulated time.
4) Police help- In case of threat, coercion or violence, lodge a complaint with the local police.
Not able to pay EMI? Use these options
RBI not only provides protection but also suggests practical solutions –
- Restructuring: Request to reduce EMI or extend tenure.
- Moratorium/Grace Period (wherever applicable): Temporary relief.
- Settlement: Agreement (in writing) on lump sum payment.
- While talking to the bank, keep the communication in writing and take documentation of any agreement.
what to avoid
Do not pay cash to the recovery agent; Make payment only through authorized channel of the bank. Do not give documents to anyone without identification or written information. Do not agree to unfair terms under fear or pressure.
Overall, the rules of the Reserve Bank of India give borrowers the right to respectful treatment. If recovery agents are harassing you through calls, pressure or threats, then the rules are on your side. Right action, complaint at the right time and concrete evidence is your biggest strength.
