Banking System Change: Now, the bank recovery system is about to undergo a major overhaul. New guidelines will be implemented from July 1, 2026, directly impacting the working practices of recovery agents. Harassment through arbitrary behavior, threats, abusive language, and repeated calls will no longer be easy. Banks will have to conduct recoveries within the established regulations.
Add informalnewz.com as a Preferred Source
The full story at a glance
- New recovery guidelines will come into effect from July 1, 2026.
- Banks will not be able to hire recovery agents without strict vetting.
- Calls will only be allowed between 8 a.m. and 7 p.m.
- A ban on abusive language, threats, and social media messaging.
- The recovery process will be halted if a complaint is pending.
Why was this change necessary?
Over the past few years, complaints of high-handedness, threats, mental harassment, and repeated calls by recovery agents have been increasing. In many cases, incidents of defaming customers through social media, calling their families, and even harassing them during festivals and mourning periods have been reported.
This is why stricter guidelines are being implemented to bring the system within the regulatory framework.
What will change from July 1, 2026?
The entire approach to banking recovery will change once the new guidelines come into effect:
- A separate recovery policy is mandatory
- Every bank will be required to establish a clear, written, and public policy for recovery agents.
- Strict Due Diligence Before Hiring an Agent
- A thorough investigation of any agent’s background, record, and credibility will be required before hiring.
- Training and Certification from IIBF
- Recovery agents will be required to undergo certified training from the Indian Institute of Banking & Finance (IIBF).
What will be the new rules regarding calls and visits?
The recovery process will now be strictly time-bound and monitored:
- Contact hours: 8 a.m. to 7 p.m.
- No calls/visits during weddings, mourning, or festivals
- Call recording and time logs are mandatory
- Repeated calls will be considered “Harsh Practice”
Will threats and abuse be completely stopped now?
Absolutely.
Under the new guidelines:
- Abusive language
- Threatening
- Social media messages
- Creating mental pressure
- Repeated phone calls
- All of these will be considered “Harsh Recovery Practices,” and the bank will be held responsible.
What happens if a customer complains?
- This is the biggest change.
- The recovery process will not proceed if a complaint is pending.
- Each bank will have a separate Grievance Redressal Mechanism.
- The name and contact details of the Grievance Officer will be mandatory in every recovery notice.
- SMS/Email notification is mandatory for customers when a change of agent is made.
How will agent transparency be enhanced?
- A complete list of recovery agents will be available on the website.
- Displayed on the mobile app.
- Publicly available at the branch.
- No stranger will be able to pose as a bank agent.
New Recovery Guidelines 2026
| Rule | What will change? |
| Effective date | July 1, 2026 |
| Contact time | 8 a.m. – 7 p.m. |
| Agent Training | IIBF certificate mandatory |
| Complaint pending | Recovery will stop |
| Social media pressure | completely banned |
| Agent List | Public on website/app/branch |
What this means for you
- Now, banks or agents will no longer be able to harass you at midnight or late in the evening.
- You can directly complain about abuse, threats, or social media slander.
- If your complaint is filed, recovery will not proceed.
- You can check the agent’s identity on the bank’s website.
- The bank will be responsible for any mental harassment.
Why is this a major change?
Millions of people in India are connected to loans, credit cards, and digital lending. In the event of default, the recovery process often becomes stressful.
The new guidelines will:
- Strengthen customer rights
- Increase accountability in the banking system
- Transform recovery from “pressure-based” to “process-based”
What will change next?
After July 1, 2026:
- Banks will be required to take responsibility for each agent.
- Penalties are possible for irregular recovery.
- Customer dignity is legally protected.
What should you do now?
- Keep your loan documents updated.
- Verify the identity of any unknown agent on the website.
- If you receive threats, immediately contact the bank’s grievance officer.
- Save call records and messages.
