Missing EMIs does not mean you lose your rights. The Reserve Bank of India (RBI) requires banks, NBFCs and other regulated lenders to follow a Fair Practices Code, and it has issued specific directions on the conduct of recovery agents. Here is what those rules mean for you.

The lender is responsible for its agents

Lenders can outsource collection to agencies, but they remain responsible for the agents’ conduct. That is why complaints go to the lender — not just to the agency.

What recovery agents must not do

Under the RBI’s directions, lenders and their agents must not:

  • use intimidation or harassment of any kind, verbal or physical;
  • humiliate you publicly or intrude on the privacy of your family members, referees or friends;
  • send inappropriate messages by phone or on social media;
  • make threatening or anonymous calls;
  • call persistently, or call you about overdue loans before 8:00 a.m. or after 7:00 p.m.; or
  • make false or misleading representations — for example, claiming you will be arrested immediately for missing an EMI.

What lenders are expected to do

  • Tell you the details of the recovery agency assigned to your account.
  • Ensure agents carry identification and the lender’s authorisation when they contact you.
  • Have a grievance redressal mechanism for complaints about recovery practices.
  • Respect the privacy of your communication about the debt.

Loan apps and digital lenders

Under the RBI’s digital lending rules, lending apps must disclose which regulated bank or NBFC is actually lending, and the same recovery rules apply. If an app threatens to share your contacts or photos, or is not linked to any regulated lender, report it immediately — see how to complain.

What to do if the rules are broken

  1. Record everything: call recordings, screenshots, dates, times and phone numbers.
  2. Complain in writing to the lender’s Grievance Redressal Officer. Our free complaint letter generator creates one in two minutes.
  3. Escalate to the RBI Integrated Ombudsman at cms.rbi.org.in if there is no resolution within 30 days.
  4. Go to the police for threats of violence, and use the National Cyber Crime Reporting Portal (cybercrime.gov.in, helpline 1930) for online threats or misuse of your photos.

Settlement and harassment

Settling a loan ends recovery on that account once completed — but negotiations themselves don’t automatically stop calls. If you are being harassed while trying to resolve your debt, our harassment help service can support you.

This article summarises public RBI guidance for general information. It is not legal advice; rules are updated from time to time.