Code of Conduct for Debt Recovery Agents
What you must carry, when you may visit, and the eight things you must never do.
The code of conduct is the list of things a recovery agent must do, and must never do, while collecting a loan. Every lender writes its own code from RBI's rules, and the agency signs an undertaking that its agents will follow it.
Break it and the lender can drop the agency, the borrower can complain, and the lender answers to RBI. Follow it and you can still recover money firmly. The rules limit how you collect, not whether you collect.
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What You Must Do on Every Visit
These come from RBI's recovery rules for banks and NBFCs, in the version that applies from 1 January 2027. Most have been required since RBI's 2008 guidelines.
- checkShow your identity card, issued by the recovery agency (a bank's own staff show the bank's card).
- checkCarry the authorisation letter from the lender or agency, and a copy of the notice the lender sent the borrower about your agency.
- checkMake sure the letter and notice carry the agency's phone number and the lender's grievance officer's details.
- checkVisit or call only between 8 a.m. and 7 p.m., unless the borrower has asked you to come at another time.
- checkMeet the borrower at the place they choose. If they give no choice, or fail to turn up twice or more in a row, you may go to their home or workplace.
- checkGive a proper receipt for every payment you collect, on the spot.
- checkSend letters or messages only if the lender has approved them first, and put your name and contact details on them.
What You Must Never Do
RBI calls these harsh recovery methods. Each one is banned outright.
- check_circleUse threatening or abusive language.
- check_circlePost videos, audio or personal details of the borrower on social media.
- check_circleSend inappropriate messages by SMS, WhatsApp or social media.
- check_circleCall or message excessively, or outside the permitted hours.
- check_circleMake threatening calls, or calls that hide who you are.
- check_circleIntimidate or harass the borrower, or their relatives, referees, friends or co-workers, including shaming them in public or intruding on their privacy.
- check_circleUse or threaten violence against the borrower, their family, property or reputation.
- check_circleLie about how much is owed or what will happen if they don't pay.
Three Rules People Get Wrong
- Talk only to the borrower or guarantor
- Loan matters are discussed only with the borrower or the guarantor. Telling a neighbour, colleague or relative about the debt breaks the code, even if said politely.
- Respect bad timing
- Avoid visits or calls during a death in the family, a medical emergency, a wedding or a similar occasion.
- Only authorised people visit
- Only a representative the lender or agency has authorised may go to the borrower's premises. You cannot bring along friends or 'helpers'.
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A Real Example
A two-wheeler loan is 95 days overdue. The borrower asks you to meet at his shop at 6 p.m. You go at 6, show your ID and authorisation letter, explain the dues and the options, and give a receipt for the ₹4,000 he pays. That is the whole code in one visit. Calling his brother to complain about him would break it.
How the DRA Exam Tests This
This is one of the easiest areas to score in, because the answers follow common sense once you know the list. Questions usually describe a situation and ask whether the agent's action is allowed: a visit at 8:30 p.m., a call to the borrower's employer, a WhatsApp status about the debt.
The trap is the 'reasonable-sounding' wrong option, such as 'the agent may inform family members so they can persuade the borrower'. RBI bans that. Another trap: options that let an agent skip the ID card if the borrower already knows them. The ID and authorisation letter are always required.
FAQs
What documents must a recovery agent carry?expand_more
An identity card, an authorisation letter from the lender or recovery agency, and a copy of the lender's notice to the borrower giving the agency's details.
Can a recovery agent come to my house?expand_more
Yes, within limits. The agent should first meet you at a place of your choice. If you give no choice, or don't turn up twice or more, the agent may visit your home or workplace, with ID and authorisation. From 1 January 2027, RBI limits visits to between 8 a.m. and 7 p.m., the window that already applies to calls.
Can a recovery agent talk to my family about my loan?expand_more
No. Loan dues may be discussed only with the borrower or guarantor. Harassing or shaming relatives, friends or co-workers is a banned practice.
Who writes the DRA code of conduct?expand_more
Each bank or NBFC writes its own code based on RBI's rules, and the recovery agency signs an undertaking that its agents will follow it.
Next steps
- RBI Recovery Rulesarrow_forward
- Defaulter's Rightsarrow_forward
- Field Visit Etiquettearrow_forward
- Preparationarrow_forward
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