MUMBAI, Feb 12 (Reuters) - India's central bank has proposed to tighten rules for lenders using agents to recover dues, including curbing the use of borrowers' personal information and mandatory recording of phone calls.
In a draft circular published on Thursday, the Reserve Bank of India proposed lenders should periodically monitor the activity of recovery agents to avoid actions that could damage their integrity and reputation.
The norms suggest recovery agents avoid violating borrowers' privacy, refrain from visits and calls during "inappropriate" events such as weddings and avoid "harsh methods" or "abusive language".
Agents should also not approach borrowers' or guarantors' relatives or contacts, the draft circular said.
The proposals follow an announcement by the RBI governor in last week's monetary policy review.
The central bank has invited feedback on the draft circular before March 6 before it finalizes the guidelines, which will come into effect from July this year.
Reporting by Ashwin Manikandan; Editing by Mrigank Dhaniwala
Source: Reuters