The Reserve Bank of India (RBI), on May 20, 2026, issued revised draft amendment directions relating to “Conduct of Regulated Entities in Recovery of Loans and Engagement of Recovery Agents” for a fresh round of public consultation. The revised drafts have been issued pursuant to the announcement made in the Statement on Developmental and Regulatory Policies dated February 6, 2026.
RBI stated that substantial stakeholder feedback was received on the draft amendment directions initially issued on February 12, 2026, resulting in revisions to several key provisions. The revised drafts also incorporate stakeholder suggestions regarding regulatory enablement for lenders to deploy technology-based mechanisms capable of restricting or disabling certain functionalities of financed mobile devices, such as mobile phones and tablets, in cases of borrower default.
The revised draft amendment directions have been issued separately for multiple categories of regulated entities including commercial banks, small finance banks, local area banks, regional rural banks, urban co-operative banks, rural co-operative banks, all India financial institutions, non-banking financial companies and housing finance companies. RBI has invited comments from regulated entities and the public up to May 31, 2026 through the “Connect 2 Regulate” portal or by email.
[Press Release: 2026-2027/298]
