Regulatory Alerts2026-08-06
Added · Updated
Reserve Bank of India (Urban Co-operative Banks - Responsible Business Conduct) Fourth Amendment Directions, 2026
These Directions amend the 2025 Responsible Business Conduct Directions for Urban Co-operative Banks (UCBs) by inserting comprehensive rules on loan recovery and the engagement of recovery agencies. UCBs must establish policies covering recovery triggers, agent due diligence, training, and compensation for borrowers, while recovery agents are required to hold an Indian Institute of Banking and Finance certificate within one year. The rules prohibit harsh recovery practices, mandate call recording for six months, and strictly regulate technology-based device locking mechanisms, including a compensation rate of ₹250 per hour for wrongful restrictions.
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