The Reserve Bank of India (RBI) issues new, stricter guidelines for how lenders recover loans, with the goal of protecting borrowers from harassment and misuse of recovery powers. The updated norms focus on fair recovery practices and increase lender accountability, setting clearer expectations on how recovery actions are carried out. Sources describe the change as strengthening borrower rights by adding safeguards intended to prevent aggressive or improper conduct during recovery. The RBI’s approach also emphasizes compliance and oversight, ensuring that lenders follow established procedures rather than using recovery mechanisms in ways that could burden borrowers unfairly. Overall, the rule changes aim to make the loan recovery process more disciplined, transparent, and borrower-friendly, while still allowing lenders to pursue recovery within defined boundaries. The RBI announcement reflects a shift toward tighter controls on lenders’ recovery behaviour and reinforces that borrowers are entitled to protections throughout the recovery process.