🛡️ RBI tightens loan recovery rules for banks
The Reserve Bank of India has issued a new circular to strengthen loan recovery practices across the financial sector. This directive targets banks and Non-Banking Financial Companies (NBFCs) operating within India. The rules explicitly prohibit threatening language or making late-night calls to borrowers. This measure aims to ensure that recovery processes are conducted ethically and professionally. Banks are now required to follow these updated guidelines strictly moving forward.