RBI Rules: How to deal with a recovery agent who comes to your home? Know RBI rules..

If you have not paid a personal loan or credit card on time, then banks and NBFCs can send recovery agents. But the Reserve Bank of India (RBI) has made clear rules so that borrowers are not harassed in the name of recovery. The purpose of these rules is that the recovery process should be respectful and transparent.

When and how can you contact

RBI has decided that agents can call or visit only between 7 am and 7 pm. Calling or coming home late at night or at odd hours is prohibited. If an agent violates this rule, then a complaint can be made directly to the bank or the RBI.

What agents cannot do?

Recovery agents cannot threaten you, abuse you, or embarrass you publicly. They will not come to the office or home in a way that you feel humiliated in front of family or colleagues. If this ever happens, then make a written complaint to the bank's Grievance Officer, and if no solution is found, file a case with RBI's Ombudsman or Complaint Management System.

Borrowers' rights
If an agent comes to you, you can ask for his identity card and written documents, which prove that he is a real agent. This is important because many times fake people try to cheat people out of money by posing as recovery agents. Apart from this, you have the right to get complete information about your loan outstanding amount and repayment options.

Repaying the loan is important
RBI rules protect your rights, but this does not end the responsibility of repaying the loan. If you are in financial trouble, then talk to the bank openly and find the option of repayment restructuring or settlement. This will not only reduce the pressure of the recovery agent but will also protect your credit score.

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