RBI asks banks, regulated entities to prevent harassment by recovery agents

No phone calls to borrowers before 8 am and after 7 pm; 'no intrusion of privacy'

The Reserve Bank of India (RBI) on Friday asked banks, non-banking financial institutions, and other regulated entities to ensure that they and their loan recovery agents do not harass people.

A RBI circular said the central bank has observed that recovery agents are deviating from instructions for outsourcing of financial services. It asked regulated entities to ensure that borrowers do not receive phone calls before 8.00 am and after 7.00 pm. It warned against making false and misleading representation to borrowers.

Regulated entities and their agents must not resort to "intimidation or harassment of any kind, either verbal or physical, against any