**Executive Summary**
The Reserve Bank of India (RBI) issued draft amendment directions on February 12, 2026, concerning the "Conduct of Regulated Entities in Recovery of Loans and Engagement of Recovery Agents". This document aims to extend detailed instructions on recovery agent engagement to all regulated entities. Public comments on these directions are invited until March 6, 2026.
**Key Points / Main Content**
* **Purpose:** The directions address matters related to the engagement of recovery agents and fair treatment of borrowers during the recovery process.
* **Scope:** The directions are comprehensive and apply to all regulated entities, covering aspects such as conduct of lenders' employees and recovery agents, due diligence, training, and code of conduct.
* **Amendment Directions Issued:** The following draft Amendment Directions have been issued:
* Reserve Bank of India (Commercial Banks - Responsible Business Conduct) Second Amendment Directions, 2026
* Reserve Bank of India (Small Finance Banks - Responsible Business Conduct) Second Amendment Directions, 2026
* Reserve Bank of India (Local Area Banks - Responsible Business Conduct) Second Amendment Directions, 2026
* Reserve Bank of India (Regional Rural Banks - Responsible Business Conduct) Second Amendment Directions, 2026
* Reserve Bank of India (Urban Co-operative Banks - Responsible Business Conduct) Second Amendment Directions, 2026
* Reserve Bank of India (Rural Co-operative Banks - Responsible Business Conduct) Second Amendment Directions, 2026
* Reserve Bank of India (All India Financial Institutions - Responsible Business Conduct) Second Amendment Directions, 2026
* Reserve Bank of India (Non-Banking Financial Companies - Responsible Business Conduct) Second Amendment Directions, 2026
* Reserve Bank of India (Housing Finance Companies) Second Amendment Directions, 2026
* **Public Comments:** The RBI has invited public comments on the draft Amendment Directions.
* **Deadline for Feedback:** Comments and feedback from regulated entities, members of the public, and other stakeholders must be submitted on or before March 6, 2026.
* **Submission Channels:** Feedback can be submitted through the 'Connect 2 Regulate' section of the RBI website or via email.
**Impact Analysis**
**Regulated Entities**
* **Impact:** Must adhere to the new comprehensive instructions regarding loan recovery practices and recovery agent engagement.
* **Action Required:** Review the draft Amendment Directions, provide feedback to the RBI by March 6, 2026, and adjust internal policies and procedures to align with the new regulations.
**Members of the Public / Other Stakeholders**
* **Impact:** Protected by enhanced regulations regarding fair treatment during the loan recovery process.
* **Action Required:** Review the draft Amendment Directions and provide feedback to the RBI by March 6, 2026, if they have concerns or suggestions.
Key Entities Referenced
Reserve Bank of India (RBI): The issuer of the draft amendment directions and central regulatory body.
Statement on Developmental and Regulatory Policies: Referenced policy document that initiated the draft amendment directions.
Conduct of Regulated Entities in Recovery of Loans and Engagement of Recovery Agents: The subject matter of the draft amendment directions.
Responsible Business Conduct Second Amendment Directions, 2026: The name of the draft amendment directions to be issued.
Regulated Entities: The entities (e.g., banks, financial institutions) subject to the drafted directions.
प्रेस प्रकाशनी PRESS RELEASE
भारतीय ररज़र्व ब ैंक
RESERVE BANK OF INDIA
वेबसाइट : www.rbi.org.in/hindi संचार वर्भाग, केंद्रीय कायाालय, शहीद भगत ससिंह मागा, फोटा, म िंबई - 400 001
Website : www.rbi.org.in Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort,
ई-मेल/email : helpdoc@rbi.org.in Mumbai - 400 001 फोन/Phone: 022 - 2266 0502
February 12, 2026
RBI Issues Draft Amendment Directions for ‘Conduct of Regulated Entities in
Recovery of Loans and Engagement of Recovery Agents’
Detailed instructions on matters related to engagement of recovery agents have
been issued to Scheduled Commercial Banks (excluding Regional Rural Banks) and
Housing Finance Companies currently. Upon a review, it has been decided to issue
comprehensive instructions to all regulated entities on conduct related matters in
recovery of loans and engagement of recovery agents, which inter alia cover aspects
such as fair treatment to borrowers during recovery process, conduct of lender’s
employees and recovery agents, due diligence, training, code of conduct for recovery
agents, etc.
2. Accordingly, in pursuance of the announcement made in the Statement on
Developmental and Regulatory Policies dated February 6, 2026, the Reserve Bank of
India (RBI) has today issued the following draft Amendment Directions for public
comments, which propose to amend existing Directions issued by the Department of
Regulation, RBI.
(i) Reserve Bank of India (Commercial Banks - Responsible Business
Conduct) Second Amendment Directions, 2026
(ii) Reserve Bank of India (Small Finance Banks - Responsible Business
Conduct) Second Amendment Directions, 2026
(iii) Reserve Bank of India (Local Area Banks - Responsible Business
Conduct) Second Amendment Directions, 2026
(iv) Reserve Bank of India (Regional Rural Banks - Responsible Business
Conduct) Second Amendment Directions, 2026
(v) Reserve Bank of India (Urban Co-operative Banks - Responsible Business
Conduct) Second Amendment Directions, 2026
(vi) Reserve Bank of India (Rural Co-operative Banks - Responsible Business
Conduct) Second Amendment Directions, 2026
(vii) Reserve Bank of India (All India Financial Institutions - Responsible
Business Conduct) Second Amendment Directions, 2026
(viii) Reserve Bank of India (Non-Banking Financial Companies - Responsible
Business Conduct) Second Amendment Directions, 2026
(ix) Reserve Bank of India (Housing Finance Companies) Second Amendment
Directions, 20262
3. The comments / feedback on the draft Amendment Directions may be submitted
by the regulated entities and members of public / other stakeholders on or before
March 6, 2026 through the following channels:
i) the ‘Connect 2 Regulate’ section on the website by following the
corresponding hyperlink provided against each document in the page where
they are hosted; or
ii) by email with the subject line ‘Feedback on (full name of the draft Amendment
Directions (including the type of Regulated Entity))’.
(Brij Raj)
Press Release: 2025-2026/2099 Chief General Manager