The Reserve Bank of India has announced new guidelines for loan recovery starting in January 2027. These regulations require that banks properly train recovery agents while ensuring they adhere to professional standards during the process. Borrowers will receive notifications regarding the recovery agents assigned to them, and all communications will need to be recorded.

RBI introduces stricter loan recovery rules from January 2027, limiting contact hours, protecting borrowers and regulating mobile device restrictions.

Banks cannot disable borrower mobile phones and laptops for loan recovery. This new rule applies unless the devices themselves were financed by lenders. The Reserve Bank of India…