Falling behind on a loan or credit card is stressful enough. Recovery agents who call late at night, use abusive language, contact your relatives or colleagues, or threaten to “come home” make it much worse. A loan default is a civil matter. Lenders are entitled to recover their dues, but only by lawful means. This guide explains what the rules allow and how to stop harassment.
What RBI rules say
The Reserve Bank of India holds banks and NBFCs responsible for the conduct of their recovery agents. Under RBI directions, including those issued in August 2022:
- Recovery calls and visits may be made only between 8 am and 7 pm, unless the borrower’s occupation requires otherwise.
- Lenders and agents must not resort to intimidation or harassment of any kind, verbal or physical.
- They must not humiliate you publicly or intrude on the privacy of your family, referees or friends.
- No threatening or anonymous calls, no persistent calling, and no inappropriate messages on phone or social media.
- Agents should carry identification and authorisation from the lender, and you should be told which agency has been engaged.
Harassment vs lawful recovery
| Lawful | Not allowed |
|---|---|
| Reminders and calls within permitted hours | Calls before 8 am or after 7 pm, or dozens of calls a day |
| Legal notices, recovery suits, arbitration, SARFAESI action for secured loans | Threats of arrest or violence |
| A visit by an authorised agent with ID | Contacting your employer, neighbours or contacts list to shame you |
| Proceedings for cheque dishonour where applicable | Abusive language, morphed photos, threats to post on social media |
Step by step
- Keep a record: call logs with times, screenshots of messages, recordings of abusive calls, and names or numbers of agents.
- Complain in writing to the lender: its Grievance Redressal Officer or Principal Nodal Officer, listing each incident and asking that harassment stop and that communication be in writing.
- Escalate to the RBI Ombudsman at cms.rbi.org.in if there is no reply within 30 days or the reply is unsatisfactory. The complaint is free.
- Go to the police for threats, abuse, or harassment of family members: criminal intimidation (Section 351 BNS), insult (Section 352 BNS), defamation, and stalking where applicable. See if the police refuse an FIR.
- Deal with the debt itself: ask for a statement of account, and explore restructuring or a one-time settlement in writing. Never pay cash to an agent without an official receipt.
Illegal loan apps
Many harassment cases involve unregistered digital lending apps that access your contacts and photos. Check whether the lender is an RBI-regulated bank or NBFC. Report illegal apps on the RBI’s Sachet portal (sachet.rbi.org.in) and on cybercrime.gov.in or helpline 1930. Threats to circulate morphed photos are offences; see threats to leak private photos.
Frequently asked questions
Can I be arrested for not paying my EMI?
No. Non-payment of a loan is not a crime by itself. Criminal proceedings arise only in specific situations, such as a dishonoured cheque or fraud at the time of taking the loan.
The agent is calling my office and relatives. Is that allowed?
No. RBI directions bar intruding on the privacy of family, referees and friends, and public humiliation.
Can the bank take my house?
For a secured home loan, the bank can follow the SARFAESI procedure, which requires notices and gives you time to respond. Take advice early if you receive such a notice.
See also: cheque bounce and legal notices.
Consultations are by appointment. To fix a time, telephone +91 99301 50560 or send a message on WhatsApp.
This guide describes general law and RBI directions as understood in October 2026. It is not legal advice; in case of threats to safety, call 112.