Recovery Calls and Borrower Rights: What the Law Requires

While lenders have a legal entitlement to pursue outstanding debts, recovery conduct is governed by strict statutory guidelines issued by the Reserve Bank of India.

Recovery agents are prohibited from making calls prior to 08:00 hours or after 19:00 hours. Threats, abusive language, inappropriate contact with family members, or unauthorized visits to workplaces constitute clear violations of the Fair Practices Code.

Borrowers facing non-compliant conduct have the right to record interactions, demand the agent's agency authorization letter, file written complaints to the bank's Principal Nodal Officer, and escalate unaddressed grievances to the RBI Ombudsman.