The Reserve Bank of India (RBI) on August 06, 2026, issued a notification regarding the amendment to Directions on ‘Conduct of Regulated Entities in Recovery of Loans and Engagement of Recovery Agents’.
The following has been stated: -
•RBI has issued final Amendment Directions on conduct of regulated entities (REs) in loan recovery and engagement of recovery agents, incorporating stakeholder feedback.
•The Directions will apply from January 01, 2027 across banks, co-operative banks, financial institutions, NBFCs and housing finance companies.
•They prescribe requirements for fair treatment of borrowers, employee/recovery-agent conduct, due diligence, training and codes of conduct.
•They also regulate RE conduct when using technology-based mechanisms to recover loan dues through financed mobile devices.
The detailed notification is given in the document below.
[Notification No.: 2026-2027/827]
