RBI Draws a Line: No Harassment, No Device Locking for Loan Recovery
What Happened
The RBI has issued a new framework, effective 1 January 2027, to curb aggressive loan recovery practices and protect borrowers' privacy and dignity. The rules apply to banks and recovery agents and set clear limits on the use of technology, personal data, and recovery tactics.
Key Takeaways
The reforms prioritize borrower dignity, privacy, and fair treatment, marking one of the biggest overhauls of India's loan recovery framework in recent years.