RBI tightens loan-recovery rules, sets borrower-contact limits from January 2027
Revised recovery norms will cap borrower contact at 8am–7pm, require call records and curb harsh collections. Device-finance lenders can restrict phones only after prescribed delinquency thresholds and must pay ₹250 per hour for wrongful restrictions.
RBI’s revised loan-recovery rules will limit borrower contact hours, mandate call records and curb harsh collections. Device-finance lenders can restrict phones only after specified delinquency periods and face ₹250-per-hour compensation for wrongful restrictions.
Why this matters
The move extends RBI’s recent consumer-credit focus after its proposal for common bank and NBFC interest-rate reset norms and its warning that September liquidity conditions could marginally affect consumer-facing rates.
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