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Guide

Borrower Rights & Recovery Agent Rules

Default on an unsecured loan is a civil matter, not a criminal one.

Permitted contact hours for recovery agents
7am – 7pm

Under the RBI Fair Practices Code. Contacting relatives or your employer is not permitted.

as of 2026-08-17· RBI Master Circular — Fair Practices Codeverified

Recovery agents routinely imply otherwise, and that implication is the core of most harassment. The RBI Fair Practices Code sets out what agents may and may not do, and it is enforceable.

By Nishit Kumar, Founder & Editor
Updated 17 August 2026

What to know

Your rights when a loan goes bad are specific: contact only within permitted hours, no abuse or intimidation, no contacting your relatives, neighbours or employer about the debt, and the right to be given the agent's identification. Lenders are responsible for the conduct of the agencies they appoint, which is the fact that makes a written complaint to the lender effective — it is their regulatory exposure, not the agency's.

The escalation ladder is: written complaint to the lender first, then the RBI Ombudsman if unresolved within the prescribed period, and the police plus the cybercrime portal where there is threat, impersonation or misuse of your contacts. Keep a log — dates, times, numbers, screenshots. Complaints supported by a record get resolved; complaints without one do not.

Questions

Can recovery agents call my family or employer?

No. The RBI Fair Practices Code restricts recovery contact to the borrower and guarantor, within permitted hours, without abuse or intimidation. Contacting relatives, neighbours or your employer about the debt is not permitted, and the lender is answerable for the conduct of agencies it appoints.

Can I go to jail for not repaying a loan?

Defaulting on an unsecured loan is a civil matter, not a criminal offence. Criminal liability arises separately — for example, on a bounced cheque under Section 138 of the Negotiable Instruments Act, or where fraud is alleged. Threats of immediate arrest for non-payment are a standard harassment tactic and are not accurate.

How do I complain about recovery harassment?

Complain in writing to the lender first, keeping a log of dates, times and numbers. If it is unresolved within the prescribed period, escalate to the RBI Ombudsman through the CMS portal. Where there are threats or misuse of your contacts, also report to the police and at cybercrime.gov.in, and call 1930.

Related reading

Sources

Every figure on this page is traced to the document it came from. Where a claim rests on a regulator or an institution’s own rate card, that is the link below — not a summary of it.

  1. [1]Master Circular — Fair Practices Code for Lenders / recovery agent conduct— Reserve Bank of IndiaPrimary
Worth knowing.Rates, fees and terms change frequently and vary by applicant. Everything here is general information, not personalised advice. Confirm the current terms directly with the institution before you apply. How we research and rate.