RBI Loan Recovery Norms

Key Points

• RBI extended implementation deadline for revised loan-recovery framework.
• Earlier deadline: 1 October 2026
• New deadline: 1 January 2027.
• Existing recovery agents covered by the framework receive a one-year transition window for certification.
• Certification can be obtained from IIBF or an institute having a tie-up with IIBF.

Exemptions

The revised framework does not apply to:

• Regulated entity's own employees doing recovery work
• Agents collecting regular periodic instalments
• Law firms issuing notices or representing lenders in courts

Prelims Trap

RBI → Banking regulation → Loan recovery agents