The RBI has issued revised draft amendment directions on the conduct of regulated entities in loan recovery and the engagement of recovery agents, reflecting stakeholder feedback.
Revised Draft Directions on Loan Recovery
The Reserve Bank of India (RBI) has issued revised draft amendment directions concerning the conduct of regulated entities in the recovery of loans and the engagement of recovery agents. This follows extensive feedback received from stakeholders after the initial draft was released.
The revisions are intended to enhance the framework governing recovery practices, aiming to protect borrower rights while ensuring effective recovery by financial institutions. Key provisions affecting the engagement of recovery agents and the standards expected of regulated entities have been amended based on stakeholder inputs.
For legal practitioners, it is essential to review these amendments closely, as they may significantly impact compliance frameworks and operational protocols of banks and financial institutions in their recovery efforts.
Citations
- RBI Press Release 2026
