RBI issues final Directions on loan recovery and recovery agents; in force from 1 January 2027
The Amendment Directions cover fair treatment of borrowers, conduct of employees and recovery agents, and technology-based recovery on financed mobile devices — for banks, NBFCs and HFCs.
Key facts
- In force
- 1 January 2027
- Who it affects
- Banks, NBFCs, HFCs and the recovery agencies they engage; borrowers
- What it is
- Rule change
- Section
- FEMA & RBI
- Published
- 6 August 2026
In 30 seconds
- Final Amendment Directions issued on 6 August 2026 after a revised draft of 20 May 2026.
- Come into effect from 1 January 2027.
- Apply across commercial banks, SFBs, LABs, RRBs, co-operative banks, AIFIs, NBFCs and HFCs.
- Also cover the conduct of lenders using a technology-based mechanism on a borrower’s financed mobile device.
हिंदी में सार
RBI ने कर्ज़ वसूली और रिकवरी एजेंटों के आचरण पर अंतिम Amendment Directions 6 अगस्त 2026 को जारी किए, जो 1 जनवरी 2027 से लागू होंगे। ये बैंकों, NBFC और हाउसिंग फाइनेंस कंपनियों सभी पर लागू हैं।
What RBI has issued
The Reserve Bank had put out revised draft Amendment Directions on “Conduct of Regulated Entities in Recovery of Loans and Engagement of Recovery Agents” on 20 May 2026. After examining the feedback, it issued the final Amendment Directions on 6 August 2026 — nine sets, one for each category of regulated entity, under the Responsible Business Conduct Directions (and the Housing Finance Companies Directions for HFCs).
What the Directions cover
- Fair treatment of borrowers during the recovery process
- Conduct of the lender’s employees and recovery agents
- Due diligence, training and a code of conduct for recovery agents
- Conduct of lenders while deploying a technology-based mechanism for recovery of dues in a borrower’s financed mobile device
From when
The Amendment Directions come into effect from 1 January 2027. The press release lists the heads covered; the actual do’s and don’ts are in the Directions on the RBI website, along with a statement on the feedback received.
How it got here
- Revised draft Amendment Directions issued for feedback
- Final Amendment Directions issued
- Directions come into effect
Published 6 August 2026. Updated 13 October 2026. This report is for general information and is not professional advice. Read the source document before acting on it.