RBI's New Loan Recovery Rules from 1 January 2027: What Recovery Agents Can and Cannot Do
Updated: 5 days ago
If you are behind on a loan or credit card, the Reserve Bank of India has just tightened the rules on how your lender and its recovery agents can chase you. The RBI issued new directions on 6 August 2026, and they come into force on 1 January 2027 for banks, NBFCs and housing finance companies.
Key takeaways
Recovery agents can contact you only between 8 am and 7 pm, by call, SMS, WhatsApp or visit.
From 1 January 2027, the lender must tell you at least one day before a recovery agency's first visit.
Agents must show an ID card and carry an authorisation letter and a copy of that notice, with the lender's grievance officer's contact details.
Lenders must record recovery calls, keep the recordings for six months, and publish a list of their recovery agencies on their website.
Threats, abuse, public shaming and calling your family, friends or employer to pressure you are not allowed, under the old rules and the new ones.
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What changes on 1 January 2027
Harassment by recovery agents was already against RBI rules. The new directions add a paper trail, so it becomes easier to prove when a lender or agent crosses the line.
Notice before anyone comes to your door
Before a recovery agency makes its first in-person visit, the lender has to share that agency's details with you at least one day in advance. An agent who turns up without that notice, an ID card and an authorization letter is not following the rules, and you can refuse to deal with them.
Recorded calls
Lenders must record recovery calls and keep the recordings for six months. If an agent threatened or abused you, ask the lender for the recording when you complain.
A public list of recovery agencies
Every lender must publish its current list of empanelled recovery agencies on its website and update it within seven days of any change. If the person calling you works for an agency that is not on the list, raise it with the lender straight away.
What recovery agents are allowed to do
Call or message you between 8 am and 7 pm to remind you of dues.
Visit your registered address after the required notice, with ID and authorisation.
Explain your outstanding amount and discuss repayment, restructuring or settlement.
Send formal legal notices on the lender's behalf.
What they cannot do
Call before 8 am or after 7 pm, or keep calling in a way meant to harass you.
Threaten you, use abusive language or use physical force.
Contact your relatives, friends, neighbours or colleagues to shame or pressure you.
Post about your loan on social media or send messages to your phone contacts.
Seize property for an unsecured loan like a personal loan or credit card without a court order.
How to complain if an agent breaks the rules
Write down the date, time and number for every call, and save screenshots of messages.
Email the lender's grievance redressal officer with your evidence and ask for the call recordings.
If you get no satisfactory reply within 30 days, file a complaint with the RBI Ombudsman at cms.rbi.org.in. It is free.
For threats of violence, or morphed photos and messages to your contacts, file a police or cyber crime complaint at cybercrime.gov.in or call 1930.
Loan app agents follow the same rules when the app lends through an RBI-regulated bank or NBFC. Our guide on stopping loan app harassment legally walks through the steps.
Rules protect you, but the debt still needs a plan
The new rules stop harassment. They do not reduce what you owe. If you cannot repay in full, a legal settlement or restructuring can end the calls for good. See how personal loan settlement and credit card settlement work.
Frequently asked questions
When do the new RBI recovery rules start?
The directions were issued on 6 August 2026 and apply from 1 January 2027. Until then, the existing Fair Practices Code and outsourcing rules apply, which already ban harassment and limit contact to 8 am to 7 pm.
Can a recovery agent come to my house without notice?
From 1 January 2027, no. The lender must inform you at least one day before a recovery agency's first visit, and the agent must carry ID, an authorisation letter and a copy of that notice.
Can recovery agents call my family or office?
No. Contacting relatives, friends or colleagues to pressure or shame you is not allowed. Complain to the lender and then the RBI Ombudsman if it happens.
Do these rules apply to NBFCs and loan apps?
Yes, they apply to banks, NBFCs and housing finance companies, including loan apps that lend through a regulated NBFC or bank.
Talk to Loan Counsel
Getting harassing calls or struggling to repay? Our team can review your loans and explain your options in plain language.
This article is general information about Indian lending rules, not legal advice for your specific case.
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About the author
Written by the Loan Counsel team. Loan Counsel is a Bengaluru-based loan settlement and debt advisory firm, founded in 2025 by Mohammad Faizan, Rahil Saqlain Ali and Khasim Khan. We help borrowers across India settle personal and business loans and credit card dues legally, and deal with recovery harassment. Meet the team.
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