Threats, public humiliation and improper harassment during loan recovery are not acceptable. The regulated lender concerned is also responsible for the agent’s conduct.
Under the applicable RBI recovery instructions, calls before 8 a.m. and after 7 p.m., as well as conduct such as persistently harassing borrowers, are prohibited in relation to covered overdue loans. Microfinance has separate rules. Even within these hours, threats or improper interference with privacy do not become lawful.
What should you do now?
- Ask for the agent’s name, lender and authorisation.
- Provide call logs, messages and details of the incident to the lender’s grievance officer.
- For threats or violence, contact the police; for a service grievance, check the RBI complaint route available to you.
Which documents should you keep?
Loan details, calls, messages, the complaint reference and proof of repayment.
Avoid this mistake
Paying cash to an agent without an official receipt or transferring money to a personal UPI account may create a separate payment dispute.
A hypothetical example
An agent calls at a permitted time in the morning but abuses the borrower’s family. Compliance with calling hours does not make harassment lawful. In the complaint, provide not only the time but also the words used, the conduct and details of the lender concerned.
Does a harassment complaint suspend the EMI obligation?
Not automatically. Keep a complaint about recovery conduct separate from debt settlement.
Legal basis and useful sources
- RBI — Responsibilities of recovery agents and prohibition on harassment
- RBI — Commercial Banks: Responsible Business Conduct Directions, 2025, current consolidated source
This is general legal information. Advice may differ depending on your facts, applicable law and state rules.