RBI may ban recourse to recovery agents

Retail borrowers and credit card holders, who have been harassed by recovery agents sent by banks, may find some relief if the measures suggested by the Reserve Bank of India are put in place. In the mid-term annual review of the annual monetary policy released today, the RBI has come down strongly against the practice of recovery agents employed by banks. “The RBI would consider imposing a temporary ban (or even a permanent ban in case of persistent abusive practices) for engaging recovery agents on those banks where strictures have been passed or penalties have been imposed by a High Court or Supreme Court. A circular in this regard would be issued by November 15, the policy added.