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RBI Issues Comprehensive Commercial Bank Recovery Agent and Loan Recovery Conduct Directions from January 2027
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Conduct of Banks in Recovery of Loan Dues and Engagement of Recovery Agencies454A.
Where a recovery agency has been engaged, the bank shall obtain an undertaking from the recovery agency that its recovery agents agree to abide by the code of conduct.
A bank shall document the time and number of calls made by its employee / recovery agent to the borrower / guarantor for recovery of loan dues.
(3) Only the representative(s) authorised by the bank / recovery agency shall visit the borrower’s / guarantor’s premises for activities related to recovery of loan dues.
(9) An employee / recovery agent shall promptly give proper acknowledgement / receipt on collection / recovery of loan dues from the borrower / guarantor.