The Reserve Bank of India has promulgated the Third Amendment to the Directions concerning Housing Finance Companies, refining the guidelines on hiring recovery agents. The revised Fair Practices Code aims to improve consumer protection.
Third Amendment on HFC Directions Issued by RBI
On August 6, 2026, the Reserve Bank of India released the Third Amendment to its Directions for Housing Finance Companies (HFCs). This amendment updates existing practices related to the engagement of recovery agents under Chapter X of the Fair Practices Code.
The new directives address the increasingly scrutinized activities of recovery agents, mandating certain operational standards to ensure that recovery efforts are conducted ethically and transparently. These changes come after a review of current practices and aim to safeguard consumer interests.
Legal practitioners representing HFCs must ensure compliance with these amendments to mitigate risks associated with consumer complaints and regulatory penalties for non-adherence to the revised Fair Practices Code.
Citations
- Reserve Bank of India (Housing Finance Companies) Third Amendment Directions (2026)