If you've ever worried about aggressive loan recovery calls or surprise visits by recovery agents, the Reserve Bank of India (RBI) has introduced a new set of rules aimed at making the recovery process more transparent and fair. Effective January 1, 2027, the central bank has issued a comprehensive framework that lays down how banks must engage recovery agencies, communicate with borrowers and conduct recovery proceedings. The directions replace the earlier recovery-related provisions under the Responsible Business Conduct Directions, 2025. Here are some of the key points of the RBI’s new directions about loan recovery.
