RBI Guidelines: How to Handle a Recovery Agent at Home

Kokila Chokkanathan
If you have missed a loan or credit card payment, banks or NBFCs may send recovery agents to collect the dues. While this can feel stressful, the Reserve bank of India (RBI) has set clear rules to ensure borrowers are treated fairly and respectfully. Here’s what you need to know.


⏰ Contact Timings: Only Between 7 AM – 7 PM

RBI mandates that recovery agents can call or visit borrowers only between 7 am and 7 pm.

  • Visiting late at night or during odd hours is strictly prohibited.
  • If an agent violates this rule, you can file a complaint with your bank or the RBI.
Tip: Keep a note of the date, time, and behavior of the agent if this happens.


❌ What Recovery Agents Cannot Do

Recovery agents have strict limitations to protect borrowers:

  • They cannot threaten, abuse, or harass you in any way.
  • Public embarrassment, either at home or workplace, is not allowed.
  • They cannot intimidate family members, colleagues, or neighbors.
If an agent misbehaves, file a written complaint to your bank’s Grievance Officer. If unresolved, escalate it to RBI’s Complaint Management System or Ombudsman.


🆔 Verify Identity: Don’t Fall for Scams

Always ask for proper identification:

  • Recovery agents must carry a valid ID card and written authorization from the bank or NBFC.
  • Ask for official documents confirming the outstanding amount and repayment schedule.
Important: Many fraudsters pose as recovery agents. Verification protects you from scams.


💬 Know Your Rights

RBI rules empower borrowers to:

  • Get complete information about your loan or credit card dues.
  • Ask for repayment options, restructuring, or settlement plans.
  • Ensure all communications are polite, professional, and transparent.
Remember: You have the right to demand respectful treatment and clarity on repayment.


💡 Repaying the Loan: Your Responsibility

While RBI protects your rights, repaying the loan is still your responsibility.

  • If you are facing financial difficulties, communicate openly with the bank.
  • Ask about repayment restructuring or settlement options to ease pressure.
  • Staying proactive helps protect your credit score and avoids future harassment.

✅ Key Takeaway

RBI rules ensure that loan recovery is safe, transparent, and respectful.

  • Verify agent identity,
  • Know your rights,
  • Repay responsibly, and
  • Seek bank assistance if needed.
By following these steps, you can handle recovery agents calmly while protecting your legal and financial interests.

 

Disclaimer:

The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.

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