16/05/2026
Legal Awareness
RBI Draft Norms 2026 on Loan Recovery: A Step Towards Fair Banking Practices
The Reserve Bank of India (RBI) has released Draft Norms 2026 proposing stricter regulation of loan recovery practices by banks and recovery agents. The draft guidelines aim to ensure that recovery processes remain lawful, transparent, and respectful towards borrowers.
Key proposed norms include restricting recovery calls and messages before 7 AM and after 7 PM, prohibiting excessive communication with borrowers or their relatives, and preventing disclosure of loan details to third parties. The draft also discourages intimidation, threats, harassment, or abusive language during recovery proceedings.
The RBI has further emphasized that banks and recovery agents must follow a proper code of conduct and maintain accountability while dealing with borrowers. These proposed measures reflect an important step towards balancing financial recovery rights with borrower protection and dignity.
AMW Advocates, Mumbai, continues to share legal awareness and observations on evolving banking and recovery regulations.
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