RBI has strengthened the rules for Loan Collection Officers or the agents. The RBI has issued new instructions to agents collecting outstanding loans that they cannot call borrowers before 8am and after 7pm. The RBI has issued a notice stating that banks, non-bank financial companies (NBFCs) and asset recovery companies (ARCs) need to ensure that their debt recovery instructions are properly followed.
RBI said borrowers should not be harassed or provoked in any way and should not send inappropriate messages to borrowers. Also, do not make threats or call from unknown numbers.
In addition, debt collectors may not call borrowers before 8:00 am and after 7:00 pm. This is not the first time the RBI has issued guidelines on this topic. The RBI has previously issued guidelines for debt collection, but recent incidents have surfaced. It is against this background that these new and very strict guidelines have been issued.
What rights do borrowers have?
Do you know what your legal rights are? First, understand that if a collections officer overdoes it, you will have to get police help. A collector cannot seize anyone’s property. The broker’s job is only to get the borrower ready for payment.
Under no circumstances may an intermediary physically, mentally or otherwise harass a borrower. Additionally, the borrower must know the collection agency’s phone number and address.