Module: | KYC, NPAs, Advances & Investment Valuations
Q181: Scenario: A borrower defaults on a retail loan from an NBFC. The NBFC assigns a third-party recovery agent. The borrower explicitly requests not to be called between 10:00 hours and 12:00 hours due to ongoing medical treatments. Based on the RBI 2026 Responsible Business Conduct guidelines, consider the following statements regarding the correct regulatory actions:
1. The recovery agent is permitted to contact or visit the borrower strictly within the mandated standard window of 08:00 hours to 19:00 hours, and must explicitly honour the borrower's request to avoid the 10:00 to 12:00 hours slot.
2. If the borrower remains unreachable, the agent is legally authorized to approach the borrower's co-workers and relatives to ascertain their whereabouts and exert recovery pressure.
3. The recovery agent must mandatorily carry and physically present a formal ID card along with a copy of the NBFC official recovery letter upon initiating direct contact with the borrower.
4. The agent is permitted to make anonymous calls outside the 08:00 to 19:00 hours window strictly if the borrower has evaded contact for more than 90 consecutive days.
Which of the statements given above is/are correct?
2. If the borrower remains unreachable, the agent is legally authorized to approach the borrower's co-workers and relatives to ascertain their whereabouts and exert recovery pressure.
3. The recovery agent must mandatorily carry and physically present a formal ID card along with a copy of the NBFC official recovery letter upon initiating direct contact with the borrower.
4. The agent is permitted to make anonymous calls outside the 08:00 to 19:00 hours window strictly if the borrower has evaded contact for more than 90 consecutive days.
Which of the statements given above is/are correct?
✅ Correct Answer: B
The correct answer is B. Statements 1 and 3 are correct.
Under the 2026 RBI guidelines, contact by recovery agents is strictly limited to the 08:00 to 19:00 hours window, and agents must honour reasonable borrower requests to avoid specific times.
Upon contact, agents are mandated to carry a formal ID card and the official recovery letter from the Regulated Entity.
Statement 2 is incorrect because the RBI enforces an absolute prohibition on approaching a borrower's relatives, friends, or co-workers for recovery, citing privacy and harassment concerns.
Statement 4 is incorrect because making anonymous, excessive, or out-of-hours calls is categorically prohibited under all circumstances, regardless of the duration of the default or the borrower's evasion.
Under the 2026 RBI guidelines, contact by recovery agents is strictly limited to the 08:00 to 19:00 hours window, and agents must honour reasonable borrower requests to avoid specific times.
Upon contact, agents are mandated to carry a formal ID card and the official recovery letter from the Regulated Entity.
Statement 2 is incorrect because the RBI enforces an absolute prohibition on approaching a borrower's relatives, friends, or co-workers for recovery, citing privacy and harassment concerns.
Statement 4 is incorrect because making anonymous, excessive, or out-of-hours calls is categorically prohibited under all circumstances, regardless of the duration of the default or the borrower's evasion.