New Delhi, May 20 -- The Reserve Bank of India (RBI) on Wednesday released revised draft directions proposing amendments related to the 'Conduct of Regulated Entities in Recovery of Loans and Engagement of Recovery Agents.'

The central bank stated that lenders are not permitted to block or deactivate mobile phones if borrowers default on loans taken to purchase the devices.

The central bank has proposed stricter conduct norms for recovery agents and bank employees, according to ET Now.

It has also advised banks to implement a board-approved recovery and collection policy.

Banks have also been advised to compensate borrowers for losses arising from improper recovery.

The RBI has also proposed mandatory IIBF certification for recovery ...