Reserve Bank of India has issued revised draft amendment directions on the conduct of regulated entities in loan recovery practices and the engagement of recovery agents, following extensive feedback received from stakeholders on the earlier draft released in February 2026.

The central bank said several key provisions in the original draft have been modified after consultations with industry participants and other stakeholders. Feedback was also received regarding the use of technology-based recovery mechanisms that can restrict or disable certain functions of financed mobile devices, such as smartphones and tablets, in cases of loan default.

The revised draft directions cover a wide range of regulated entities, including commercial banks, small finance banks, regional rural banks, cooperative banks, non-banking financial companies, housing finance companies, and all-India financial institutions.

The RBI has invited comments and feedback from regulated entities, industry participants, and the public until May 31, 2026, through its ‘Connect 2 Regulate’ platform or via email.