Key facts
- RBI has set guidelines for banks, NBFCs, and collection agencies on borrower contact.
- Borrowers have legal rights concerning loan recovery practices.
- Steps can be taken by borrowers facing harassment.
The Reserve Bank of India (RBI) has issued guidelines that dictate how banks, non-banking financial companies (NBFCs), and collection agencies are permitted to contact borrowers. These regulations are in place to protect borrowers from harassment during the loan recovery process. Borrowers are advised to be aware of their legal rights and to follow specific steps if they encounter undue pressure or misconduct from lenders or collection agencies.