India central bank proposes stricter rules for debt recovery agents to protect borrower privacy
The Reserve Bank of India proposed new rules today to curb aggressive debt recovery tactics. These measures include call recording and privacy protections.
The Reserve Bank of India published a draft circular on February 12, 2026, proposing stricter rules for lenders that use external agents to recover dues. This policy-driven announcement introduces new conduct standards for recovery agents and aims to strengthen borrower-protection practices across India
IN. The central bank's proposal represents a significant shift in regulatory oversight, focusing on the methods used to collect outstanding debts and the responsibilities of financial institutions in monitoring their representatives.











