RBI's new rules for agents: No recovery calls after 7:00pm
13 Feb 2026

In a major move, the Reserve Bank of India (RBI) has proposed changes to the guidelines for debt recovery and appointment of recovery agents.

The new norms, which will come into effect from July 1, 2026, aim to protect borrowers from harassment by recovery agents.

The regulations prohibit calls after 7:00pm and require certification for recovery agents.

Banks must have board-approved policy for engaging recovery agents
Policy requirements

The RBI has also directed all banks to create a formal, board-approved policy for engaging recovery agents.

This policy should clearly define the process of appointing agents, set standards for acceptable conduct, and establish a structured mechanism to address customer complaints.

The new guidelines are aimed at ensuring that employees or recovery agents involved in loan collection follow these rules strictly.

Recovery calls can only be made between these hours
Contact regulations

The RBI's guidelines also lay down strict rules for contact hours and privacy.

Recovery agents can only contact borrowers or guarantors between 8:00am and 7:00pm.

If a borrower requests not to be contacted at a certain time, such requests should generally be respected.

The employee or recovery agent should only interact with the borrower or guarantor, not their relatives or acquaintances.

Calls not allowed during sensitive occasions
Contact locations

The RBI has also specified where the borrower should be contacted.

If no preference is given, contact should usually be made at the borrower's home. If they are not available there, then contact may be made at their workplace.

Recovery calls or visits must not be made during sensitive occasions like a bereavement in the family, natural calamities, and marriage functions.

Rules for microfinance loans
Loan collection

For microfinance loans, repayments should be collected at a mutually agreed central location.

However, if the borrower doesn't show up here on two or more consecutive occasions, field staff may visit their residence or workplace for collection.

Employees or recovery agents are also required to maintain decency and proper conduct during all interactions and visits under these new rules.

Who is authorized to visit borrower's premises?
Authorization rules

The new guidelines also state that only those individuals who are formally authorized by the bank can visit a borrower's premises for loan recovery.

Any written communication sent by a recovery agent to the borrower or guarantor must be approved in advance by the bank.

After collecting loan dues, an employee or recovery agent has to promptly provide a proper acknowledgment or receipt to the borrower or guarantor.