The amendment introduces definitions of “recovery agency” and “recovery agent”, removes certain existing provisions relating to recovery agents, and inserts a comprehensive framework governing recovery of loan dues and engagement of recovery agencies. Where a recovery agency has been engaged, the NBFC shall obtain an undertaking from the recovery agency that its recovery agents agree to abide by the code of conduct. Only the representative(s) authorised by the NBFC / recovery agency shall visit the borrower’s / guarantor’s premises for activities related to recovery of loan dues. An employee / recovery agent shall promptly give proper acknowledgement / receipt on collection / recovery of loan dues from the borrower / guarantor. An NBFC’s employee / recovery agent shall not engage in any harsh methods towards collection / recovery.