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RBI Bans Threats and Late-Night Calls in New Loan Recovery Rules

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The Reserve Bank of India has introduced new guidelines governing how lenders and their agents may contact borrowers for loan recovery. The rules explicitly prohibit the use of threatening, abusive, or intimidating language during any communication. Recovery agents are also barred from making anonymous or threatening phone calls to borrowers. The regulations aim to protect loan defaulters from harassment while ensuring recovery processes remain lawful and respectful.

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RBI Bans Threats and Late-Night Calls in New Loan Recovery Rules · ShortSingh