Why RBI has mandated recording of every call made by bank loan recovery agents, professional training also compulsory for them
RBI Loan Recovery Call Recording Rules: The Reserve Bank of India has introduced new draft rules to bring transparency to the loan recovery process. Bank recovery agents will no longer be able to harass customers by threatening or abusing them over the phone.
The implementation of the RBI Loan Recovery Call Recording Rules will provide significant relief to customers from mental harassment. The primary objective of this new measure is to maintain discipline in the banking system and protect consumer rights.
According to the new RBI draft, it will now be mandatory to record every call made by a recovery agent. This digital record will serve as solid legal evidence in the event of any future dispute. This will significantly help curb arbitrary and intimidating behavior by agents.
Everything agents say will now be digitally recorded, ensuring accountability for abusive language. This change is considered a significant and positive step towards increasing transparency in the banking sector. Customers will now be permanently relieved of hooliganism and threats in the name of recovery.
Mandatory Professional Training
The RBI has made training from the Indian Institute of Banking and Finance mandatory to become a recovery agent. No one will be able to work as a recovery agent without proper certification and professional training. This training will provide agents with accurate and clear information about legal provisions and customer rights.
Recovery agents will be required to always treat borrowers with respect
Under the proposed rules, bank employees and recovery agents will now be required to always treat borrowers with respect. If an agent visits a customer's home for recovery, they must also maintain decorum and decency. There will now be strict legal restrictions on acts that harass or publicly humiliate family members.
Increasing Responsibility of Banks
With the implementation of these new rules, banks will be required to closely monitor the activities of their recovery agents. If an agent violates the rules, the bank concerned will be held directly responsible. Experts say that this balanced process will completely protect customers from mental stress during loan recovery.
Restoring customer confidence
This draft of the RBI is set to prove a game-changer in restoring customer confidence in the banking system. Now, in case of loan defaults, customers will be treated with dignity as consumers, not criminals. These rules will not only protect customers but will also make the functioning of banks more professional and disciplined.