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Recovery Agents engaged by banks – Second Draft guidelines


The Reserve Bank of India on 25th March 2008 has placed the second draft of the Guidelines on Recovery Agents for public comments.

The revised guidelines include provision of recording of calls made by recovery agents to customers and vice versa, placing of updated list of recovery agents on bank's website, periodical verification of antecedents of employees of recovery agents which may include verification through police, additional conditions for repossession of assets.

The revised guidelines have also provided for continuation of recovery proceedings if the borrower continuously makes frivolous/vexatious complaints and utilisation of credit counsellors’ services if the case of a particular borrower deserves sympathetic consideration.

Keeping in view the fact that a large number of agents have to be trained throughout the country, the revised guidelines have permitted banks to have tie up arrangements with IIBF and other institutes/ bank’s own training colleges.

Banks should have a due diligence process in place for engagement of recovery agents, which should be so structured to cover, among others, individuals involved in the recovery process. Banks engaging recovery agents are also advised by RBI to undertake a periodical review of the mechanism to learn from experience, to effect improvements.

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