RBI Tightens Loan Recovery Norms to Curb Aggressive Debt Collection

RBI Tightens Loan Recovery Norms to Curb Aggressive Debt Collection

The Reserve Bank of India (RBI) introduced comprehensive draft guidelines this week aimed at curbing aggressive and unethical loan recovery practices across the banking sector. Targeting both direct bank employees and third-party recovery agents, the new regulations mandate strict behavioral standards to protect borrowers from harassment and invasive collection tactics. The central bank’s intervention follows…

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Regulators Crack Down on Predatory Debt Collection Tactics

Regulators Crack Down on Predatory Debt Collection Tactics

Financial regulatory authorities have issued a sweeping directive this week prohibiting digital lenders and debt collection agencies from remotely locking borrower smartphones or engaging in the practice of online shaming to recover outstanding debts. The mandate, which takes effect immediately across major financial jurisdictions, seeks to curb aggressive collection tactics that have increasingly relied on…

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