As per RBI guidelines, recovery agents are bound by a strict code of conduct. They must maintain professionalism, respect borrowers’ personal space, and follow specific time restrictions when contacting them. The penalty imposed serves as a reminder that banks must strictly adhere to these rules and cannot invade customers’ privacy or harass them, even in cases of loan defaults or delayed payments.

To protect yourself from potential harassment, here are some key points to keep in mind when dealing with recovery agents:

• Verify Agent Identity: Always ask to see the recovery agent’s ID card, which should be issued by the bank or NBFC.

• Check for Authorization: Ensure that the agent is officially authorized to collect dues on behalf of the lender.

• Know Your Rights: Recovery agents are prohibited from contacting you outside of the hours between 7 am and 7 pm. They are also required to be respectful, courteous, and professional at all times.

In light of rising fraud cases, borrowers should remain cautious and ensure they are dealing with legitimate recovery agents, not impostors.