People resort to loans when they need money for some reason or another in life. But then, as soon as one or two installments (EMIs) of the loan bounce, your phone starts ringing? The person on the other side of the phone threatens you, insults you, and threatens to come to your house and see you? So if you are also troubled by this 'illegal torture' of loan recovery agents, then there is no need to be afraid.

The Reserve Bank of India (RBI) has given you, that is, every borrower, some such 'rights', which everyone should know. These rights can work to shut the mouths of these recovery agents. These special rules work as a 'safety shield' for the loan taker. So let's know those 5 rules that every borrower must know.

1. 'Laxman Rekha' of time

This is considered the first and the biggest rule. Yes, no recovery agent can call you before 8 am or after 7 pm. If it happens that someone harasses you or your family by calling late at night or early in the morning, then they will directly violate the rules of the RBI.

2. Direct FIR on abuse and threat

You should know that no recovery agent can use abusive language, abuse, or any kind of physical or mental threat to you. Apart from this, threats of implicating you in false legal cases cannot be given. Doing this is a criminal case, and you can file a complaint against it with the police.

3. Harassing family and friends is 'illegal'
If you have taken a loan, then the recovery agent cannot even try to embarrass you by calling your relatives, friends, or colleagues at the office and telling them about your loan. This is also a violation of privacy and is considered completely illegal.

4. Ban on creating a scene in the home or office

Recovery agents can never come to your home or office without informing you or without your consent. Nor can they shout in the neighborhood or create a ruckus in your office, which also comes under the category of harassment.

5. The agent will have to show his 'identity card'
Whenever a recovery agent comes to meet you or calls you, your first right is to ask him for his identity. You have every right to ask him for the bank's authorization letter and his ID card. He cannot refuse to do so.

What to do if the agent breaks the rules?

If a recovery agent is repeatedly threatening you, then you never need to keep quiet. First of all, make sure to record every call; this can serve as solid proof. After this, send a written complaint to the nodal officer of that bank or NBFC and keep a copy safe. If no action is taken in 30 days, you can file an online complaint with the Banking Ombudsman of the RBI. (Note: This article is for information only)

Disclaimer: This content has been sourced and edited from Hr Breaking. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.