RBI Bars Loan Agents: 7 Rights You Now Have

RBI has released strict rules on how banks and NBFCs can recover loans. Lenders and their agents cannot threaten, harass, or make surprise visits. Borrowers now have clear rights — and a path to complain if those rights are broken.

Here's what happened: RBI has issued a formal framework capping loan recovery calls between 8 AM and 7 PM, banning contact outside these hours on any day.. Lenders and their hired recovery agents are now explicitly barred from using threats, abusive language, or contacting the borrower's family, employer, or neighbours.. Borrowers must receive advance notice before any field visit, and agents are required to carry a written authorisation letter from the lending institution at all times..

What you should do: Note the time and date of every recovery call or visit you receive — this log is your evidence if an agent violates the 8 AM–7 PM rule.. Ask any recovery agent to show their authorisation letter from the lender before speaking to them; if they refuse, end the interaction and report it.. File a complaint at cms.rbi.org.in (RBI Ombudsman portal) if your lender does not resolve a recovery harassment grievance within 30 days — it is free and formal..

Pro tip: If a recovery agent contacts your employer or a family member who is not a co-borrower, that alone is grounds for an RBI Ombudsman complaint — lenders can face penalties for this specific act.

If you're dealing with recovery agents, read our recovery agent harassment guide covering your RBI rights.