Regulatory Alerts2026-08-06
Added · Updated
Reserve Bank of India (Commercial Banks - Responsible Business Conduct) Fourth Amendment Directions, 2026
The Directions amend the Reserve Bank of India (Commercial Banks - Responsible Business Conduct) Directions, 2025, to establish comprehensive rules for the recovery of loan dues and the engagement of recovery agencies by Commercial Banks, excluding Small Finance Banks, Payments Banks, Regional Rural Banks, and Local Area Banks. Effective January 1, 2027, banks must implement policies covering due diligence, mandatory IIBF certification for agents, codes of conduct, and compensation for borrowers harmed by non-compliant recovery actions. The text prohibits harsh recovery practices, restricts the use of technology-based device locking mechanisms to financed devices with specific timelines and compensation caps, and mandates detailed disclosure and grievance redressal procedures.
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