RBI to Tighten Loan Recovery & Mis-selling Norms: New Guidelines Coming Soon

• RBI to issue draft guidelines on consumer protection, loan recovery, and mis-selling financial products.
• Governor Sanjay Malhotra announced the move after the Monetary Policy Committee meeting.
• New norms aim to harmonize existing instructions for regulated entities on recovery agents and loan recovery.
• Guidelines will address mis-selling of financial products, ensuring suitability for customer needs and risk appetite.
• Analysts expect increased compliance obligations for lenders but a more transparent and sustainable retail lending environment.