RBI Warns HDFC Bank; Tells it to Respect Borrower’s Privacy

The Reserve Bank of India has fined HDFC Bank with a ₹1-crore penalty for deviating from the guidelines concerning the conduct of recovery agents.

This penalty has been an eye-opener for lenders when it comes to following Apex Bank’s guidelines as recovery agents have been following aggressive tactics to recover money.

According to RBI, HDFC Bank agents have contacted borrowers before 7 am and after 7 pm, which is generally not permissible and violates RBI timings guidelines.

The normal permissible hours are between 7 am and 7 pm, even if the borrower struggles to make loan payments.

Let’s have a look at certain borrower rights against agents.

Amid rising fraud cases, borrowers have the right to check the identity of agents. So borrowers can request for display of ID card and verify the same.

At the same time, agents have to maintain confidentiality regarding borrowers' debt. They are not supposed to reveal debt details to any other individuals or entities. If the agent breaches, the borrower has the right to take legal action against the bank.

Also, recovery agents must be polite with borrowers and shouldn’t harass the borrower.

Recovery agents must treat borrowers with dignity, respect personal space, and avoid harassment.