Loan Recovery Harassment? RBI Rules Protect Borrowers

• RBI has issued strict guidelines for banks and NBFCs to ensure respectful and legal loan recovery, protecting borrowers' dignity and privacy.
• Recovery agents are prohibited from using abusive language, threatening, making repeated calls outside 8 AM-7 PM, or disclosing loan details to third parties.
• If harassed, borrowers should collect evidence, complain to the bank/NBFC, then to RBI via CMS, and contact police for threats or violence.
• For EMI payment difficulties, RBI suggests options like loan restructuring, moratorium, or grace periods, emphasizing written agreements and avoiding cash payments to agents.

Why It Matters: RBI rules empower borrowers against illegal loan recovery agent harassment.