New Delhi, Sept. 24 -- The Reserve Bank of India (RBI), in its recent Responsible Business Conduct Rules, suggested several measures to ensure that loan recovery is done in a legitimate manner. RBI rules cover the use of technology for the recovery of loans-it suggests the use of technological tools for the recovery of dues alongside the due diligence that is usually carried out.

A prominent example is of loans taken to purchase mobile phones that could remotely be handicapped if dues went unpaid. Earlier, RBI had warned a few regulated entities (REs) against such practices.

However, the guidelines now in place lay out a detailed procedure for REs to deploy such means as well as the fines they would have to pay for violations of custome...