Fair Practices Code (FPC)

The Fair Practices Code, issued by RBI as a Master Direction, sets the baseline standards every regulated lender must follow in its dealings with borrowers. Key requirements include: transparent disclosure of interest rates, fees, and charges in the loan agreement; provision of the Key Fact Statement before disbursal; 7-day acknowledgement and 30-day resolution timelines for borrower grievances; a published Grievance Redressal Officer and Nodal Officer contact; and a defined Code of Conduct for recovery agents that prohibits calls outside 7 AM–7 PM, third-party contact, harassment, or coercion. FPC violations are grounds for complaint at the RBI Banking Ombudsman.