The Reserve Bank of India has issued draft Responsible Business Conduct (Second Amendment) Directions, 2026 to regulate the conduct of loan recovery agents, effective from July 1, 2026. The guidelines prohibit harassment, abusive language, excessive or anonymous calls, inappropriate digital messages, and any form of intimidation or public humiliation of borrowers or guarantors. Banks are required to establish a dedicated grievance redressal mechanism and adopt board-approved policies covering due diligence, code of conduct, and performance standards for recovery agents. The move aims to strengthen financial consumer protection, promote ethical recovery practices, and balance borrower dignity with credit discipline in India’s expanding retail lending ecosystem.
Click to View MoreThe emerging priorities of India’s banking sector for 2025–2035 centre on strengthening deposit mobilisation to support rapid credit expansion, especially by deepening outreach in rural and semi-urban areas. Banks are shifting focus toward high-growth segments such as manufacturing, infrastructure, and renewable energy, while expanding green finance through sustainability-linked lending and support for technologies like Small Modular Reactors. Financial inclusion remains a core objective, with schemes such as PM MUDRA, PM Vishwakarma, PM Surya Ghar, PM Vidyalaxmi, and KCC enhancing grassroots access to credit. Agriculture lending is being redesigned under the PM Dhan Dhanya Yojana to boost productivity in low-performing districts. At the global level, banks are strengthening their presence through platforms like GIFT City and the India International Bullion Exchange. A parallel priority is improving customer experience through multilingual digital platforms and faster grievance redressal, reflecting a shift toward more technology-driven and citizen-centric banking.
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