MUMBAI, India, Aug. 6 -- Reserve Bank of India issued the following notification:

RBI/2026-27/225

DOR.MCS.REC.No.195/01-01-035/2026-27

August 6, 2026

Reserve Bank of India (Local Area Banks - Responsible Business Conduct) Fourth Amendment Directions, 2026

Certain instructions on matters related to recovery of microfinance loans and engagement of recovery agents therefor by Local Area Banks (LABs) have been issued to LABs under the Reserve Bank of India (Local Area Banks - Responsible Business Conduct) Directions, 2025. The extant instructions have since been reviewed and it has been decided to issue comprehensive instructions on conduct related matters in recovery of loan dues and engagement of recovery agencies to all LABs (hereinafte...