New Delhi, May 25 -- Amid rising complaints involving coercive practices, intimidation, abusive calls and public humiliation, the Reserve Bank of India (RBI) has further tightened and consolidated recovery norms in 2026. As a result, loan recovery agents cannot harass borrowers or make their personal lives difficult.

It is vital to note that the revised framework will come into force on 1 October 2026. Especially the consolidated rules governing recovery agents, borrower contact, disclosure requirements, call recording, grievance redress, and the new mobile-device restriction provisions for financed devices.

It places greater responsibility on banking institutions and NBFCs for the conduct of both outsourced and in-house recovery agents...