RBI defers loan recovery norms till Jan as lenders seek more time
Loan recovery has emerged as a contentious issue in recent years, bringing back memories from the late 2000s, when private banks used coercive tactics for the process.
The Reserve Bank of India (RBI) has decided to postpone the implementation of its guidelines on loan recovery and engagement of recovery agents by three months, until January 1, 2027. This extension was granted after the industry requested more time to adjust to the new rules. The regulator clarified that the new directives would not apply to the lenders' own employees.
The RBI explained that the directive was extended to ensure a smooth implementation process due to technical and operational changes necessitated by the implementation of the guidelines. The original implementation date had been set for October 1, 2022.
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