RBI has made the rules strict for loan recovery agents. RBI has issued new instructions for the agents collecting outstanding loans, saying that they cannot call borrowers before 8 in the morning and after 7 in the evening. RBI issued a notification saying that banks, non-bank financial companies (NBFCs) and asset reconstruction companies (ARCs) should ensure that its instructions regarding debt recovery are properly followed.

RBI said that the borrowers should not be harassed in any way, they should not be provoked, no inappropriate message should be sent to the borrowers. Also, no threats should be made, calls should not be made from unknown numbers.

Not only this, the recovery agents cannot make any kind of call to any borrower before 8 am and after 7 pm. It is not that for the first time RBI has issued guidelines on this issue. Even before this, RBI has been issuing guidelines related to debt recovery, but recently incidents have come to the fore. In view of these, these new and very strict guidelines have been issued.

What are the rights of the borrower

Now you know what are the legal rights of the borrower? First of all, understand that if any recovery agent is doing excesses, then take the help of the police. A recovery agent cannot confiscate anyone’s property. The job of the agent is only to prepare the borrower for payment.

Under no circumstances, the agent can harass the borrower physically, mentally or in any other way. Not only this, the borrower needs to know the phone number and address of the recovery agent. The job of loan agent recovery agent is to call the borrowers, collect payment from them. Loan agents can explain the terms and conditions of the loan to the borrowers, add late fees but do not harass anyone.