Overview
- Released on February 12, the draft amendment directions seek a single borrower‑centric framework for commercial banks, NBFCs, housing finance companies, co‑operatives and other regulated entities.
- Banks would have to record all recovery calls, log the time and frequency of outreach, and inform borrowers that conversations are being recorded.
- Lenders must vet and monitor recovery agents, implement a formal code of conduct, provide mandatory training with possible IIBF certification, and publish up‑to‑date lists of empanelled agents.
- The draft bars abusive or threatening behaviour, limits recovery contact to 8 am–7 pm, discourages visits during sensitive occasions, and instructs agents to deal only with borrowers or guarantors.
- Operational safeguards include a dedicated grievance mechanism that pauses recovery assignment unless complaints are frivolous, controls on incentive structures, and a consultation window through March 6, with some reports indicating a July 1 start if finalised.