Empathy and efficiency: these are the key words guiding the new approach to debt recovery in India, according to the Reserve Bank of India (RBI).
As reported by Business Today, the new rules set clear boundaries on how lenders and recovery agents should deal with borrowers — including the obligation to contact them only between 8 a.m. and 7 p.m., the requirement for agents to carry proper identification, and a general conduct based on respect and empathy.
Financial institutions will be held accountable for the behavior of their agents, who must refrain from using threats or humiliation during collection procedures. The guidelines also establish that the first communication must be in writing, and that in-person visits can take place only with the borrower’s prior consent.
This new “ethics of fair recovery” also embraces the use of digital tools and artificial intelligence, raising important questions about how to ensure that technology is used in a truly empathetic and responsible way.
