Loan Recovery Agents Harassing? RBI Rules Offer Protection

• RBI has strict rules for banks and NBFCs to prevent harassment by loan recovery agents, ensuring dignified and legal recovery processes.
• Recovery agents are prohibited from threatening, abusing, intimidating, or sharing personal loan details with third parties.
• Agents can only contact borrowers between 8 AM and 7 PM; calls outside this window are considered harassment.
• Banks are responsible for their agents' conduct and must ensure they are trained and follow a code of conduct.
• If harassed, borrowers should complain to the bank/NBFC, then to RBI's CMS, and can involve the police for threats or violence.

Why It Matters: RBI rules protect borrowers from illegal loan recovery agent harassment.