RBI guidelines emphasize that the Fair Practice Code (FPC) must be transparent, non-coercive, and non-threatening. Communication with borrowers should be conducted in a respectful and non-abusive manner. Banks and other financial institutions are required to follow the extensive criteria for B2B debt collection that the RBI has developed in order to protect borrowers’ interests and uphold fair procedures. The main points and importance of the RBI’s debt collection procedures are outlined in this article.
What are RBI guidelines for debt collection agencies in India?