Harassed by loan recovery agents? What the RBI rules say
Recovery agents of banks and NBFCs cannot threaten you, abuse you or call outside 8 am to 7 pm. Here is how to complain to the lender, the RBI Ombudsman and the police.
Owing money does not take away your rights. A lender can recover a genuine debt, but only by fair means.
What recovery agents must not do
The Reserve Bank of India has told banks, NBFCs and asset reconstruction companies, and the recovery agents working for them, that they must not:
- intimidate or harass you, verbally or physically, or humiliate you in public;
- call you before 8 am or after 7 pm;
- make threatening or anonymous calls, or send inappropriate messages;
- make false or misleading statements about the consequences of not paying;
- harass your family, friends or colleagues.
The bank or NBFC is responsible for what its recovery agents do.
Step 1: Keep a record
Note the date and time of each call, the caller’s number and name, and what was said. Save messages and voice recordings. Ask the agent for their identity card and the lender’s authorisation letter.
Step 2: Complain to the lender
Write to the lender’s grievance redressal officer (details are on its website), describing the harassment with your records. Keep the complaint number. If you are in genuine difficulty, ask in writing for restructuring or a repayment plan.
Step 3: RBI Ombudsman
If the lender does not reply within 30 days, or you are not satisfied, complain to the RBI Ombudsman at cms.rbi.org.in. It is free.
Step 4: Police, for threats
Threats to harm you, abuse, or demands made with threats can be criminal offences, such as criminal intimidation under the Bharatiya Nyaya Sanhita, 2023. File a complaint at your police station, or at cybercrime.gov.in if the threats come by phone or online. Call 112 if you are in danger.
Loan apps
If a loan app shares your photos or contacts or threatens you, report it on cybercrime.gov.in (call 1930 if money was taken), report the app on its app store, and check whether the lender is registered with the RBI before borrowing.