Fair Debt Collection Practices in India

Debt collection is a reality of the financial world, but it must be done with dignity and within the law. The RBI and Indian courts have clearly defined what constitutes fair practice and what is considered harassment.

The BCSBI Code

The Banking Codes and Standards Board of India (BCSBI) sets the "Code of Bank's Commitment to Customers." This code mandates that agents must be polite, must not use physical force, and must respect your privacy. Violating this code can lead to heavy penalties for the bank.

What Agents CANNOT Do

• Call you at odd hours (late night or early morning).
• Visit your office or home without prior notice.
• Use abusive language or threat of physical harm.
• Misrepresent their identity or legal authority.

Your Duty as a Borrower

While you have rights, you also have a duty to communicate. If you're in trouble, tell the bank. Refusing to talk often leads to more aggressive recovery tactics. A professional legal representative can facilitate this communication in a way that respects your rights and the law.