What Recovery Agents Can and Can't Do Under RBI Rules
Owing money doesn't give anyone the right to threaten or shame you. Here's what the rules say, including the new protections coming in January 2027.
If you've fallen behind on a loan, the lender is entitled to ask for its money. What it isn't entitled to do is harass you. RBI rules set clear limits on how banks, NBFCs and the recovery agents they hire can behave, and those limits get stronger from 1 January 2027.
What agents can't do today
- Call outside 8 am to 7 pm. Calls and messages before 8 am or after 7 pm aren't allowed. Excessive calling also counts as harassment.
- Threaten or intimidate you. No threats of violence, no abusive language, no anonymous threatening calls, no false claims about arrest or police action.
- Pressure the people around you. Intimidating your family, friends or colleagues to push you to pay isn't allowed.
- Humiliate you in public. Shaming you in front of neighbours or co-workers, or posting your details online, is prohibited.
- Mislead you. Agents can't send misleading messages or lie about what you owe or what will happen.
New protections from 1 January 2027
In August 2026, RBI issued updated recovery directions covering banks, NBFCs, co-operative banks and housing finance companies. They take effect on 1 January 2027 and add these safeguards:
- Call recording. Lenders must log and record recovery calls and tell you that the call is being recorded.
- Notice before visits. You must be told which agency has been assigned at least one day before an in-person visit, and immediately if the agency changes.
- Proof of identity. Agents must carry an ID card, an authorisation letter and a copy of the notice.
- Visits as a later step. Home or workplace visits are meant to follow failed attempts to reach you, and should respect occasions like bereavements, medical emergencies and weddings.
- No social media shaming. Posting recordings or personal details online is explicitly prohibited.
- A named grievance officer. Their contact details must be in your loan agreement and on every recovery communication.
Lenders also have to publish the list of recovery agencies they use on their websites, so you can check whether the person calling you is genuine.
What you still owe
These rules protect your dignity. They don't cancel the debt. The calls usually stop for good only when the loan itself is dealt with, whether by clearing overdues, foreclosing or negotiating a settlement. Our guide to settlement vs foreclosure explains the options.
Protect yourself
- Never pay an agent in cash or into a personal account. Pay only into the lender's official account and keep the receipt.
- Ask any visiting agent for their ID and authorisation letter.
- Never share an OTP, card PIN or banking password over the phone.
- Keep a log of every call: date, time, number and what was said.
Being harassed right now? See how to complain against a recovery agent, step by step.
Frequently asked questions
Can recovery agents call my family or office?
They can't use your family, friends or colleagues to intimidate or shame you. Under RBI's updated directions, intimidating the people around you is expressly prohibited.
What time can recovery agents call?
Only between 8 am and 7 pm. Calls outside these hours, or excessive calling, count as harassment.
Do the new RBI recovery rules apply to NBFCs and loan apps?
The updated directions, effective 1 January 2027, cover banks, NBFCs, co-operative banks and housing finance companies. Digital lenders operating through regulated entities are bound through those entities.
This article is general information, not financial or legal advice. Rules and lender policies change, so check the latest RBI notifications and your loan documents before acting.