The Reserve Bank of India (RBI) has issued the final Amendment Directions on the conduct of regulated entities in the recovery of loans and engagement of recovery agents, following stakeholder consultations on the draft guidelines released in May 2026. The revised norms will come into effect from January 1, 2027.

The amendment directions apply to banks, small finance banks, regional rural banks, co-operative banks, non-banking financial companies (NBFCs), housing finance companies (HFCs), and other regulated financial institutions.

The new framework lays down comprehensive guidelines on fair treatment of borrowers during the recovery process, including the conduct of lenders' employees and recovery agents, due diligence and training requirements, and a code of conduct for recovery agents. It also introduces guidelines governing the use of technology-based mechanisms for recovering loan dues from financed mobile devices, with the aim of ensuring responsible and transparent recovery practices.