Soumya Prakash Pradhan

When individuals take a loan to purchase a bike or car, they often opt for finance options.

However, in cases where they are unable to pay the finance bill after a few months, finance teams may resort to harsh methods of recovery, such as visiting the borrower's house and seizing the vehicle.

This type of harassment can be emotionally distressing for borrowers and their families. To combat this issue, the Reserve Bank of India (RBI) has taken strict action against finance agents and updated fair practices for loan recovery.

First: Under the new guidelines, agents are not permitted to publicly humiliate borrowers for failing to pay their loan installments. Harassing borrowers or their relatives by sending threatening messages or calls is strictly prohibited.

Second: Finance agents are now only allowed to call borrowers between 8 am to 7 pm. Calling before or after these hours may lead to disciplinary action against the agent.

Third: Finance agents cannot visit borrowers without prior notice. They must inform the borrower about the visit at least 24 hours in advance.

Four: The RBI has also made it clear that agents cannot engage in any harsh method towards loan recovery. They cannot use force or threats to seize the borrower's vehicle, and they must follow legal procedures when recovering the loan.

Complain to RBI against harassment:

The Reserve Bank of India (RBI) has taken a strong stance against the harassment of borrowers by finance agents. The RBI has stated that any agent found to be in violation of this rule will face severe consequences.

The RBI has made it clear that any borrower who faces harassment by a finance agent should immediately contact the police.

Also, if borrower faces this problem, they should register a complaint on the RBI's complaint website, website's address is

The RBI has assured borrowers that it will take immediate action against any agent found to be in violation of this rule.