RBI directs ARCs to train recovery agents not to harass borrowers

Wants grievance redressal mechanism in place, says ARCs will be responsible for agents' actions

The Reserve Bank of India (RBI) on Thursday told asset reconstruction companies (ARCs) to ensure recovery agents do not harass people, by preparing a fair practices code.

It has also directed them to set up a grievance redressal mechanism for faster resolution of genuine complaints.

The RBI has made it clear that ARCs will be held responsible for the actions of their recovery agents who, in turn, must respect customer confidentiality.

“ARCs shall ensure that recovery agents are properly trained to handle their responsibilities with sensitivity, particularly with respect to aspects such as hours of calling, privacy of customer information,