Role of Recovery Agents: - Recovery agents are individuals or agencies appointed by banks, financial institutions, or creditors to recover outstanding dues from borrowers. - Their tasks include sending reminders, negotiating settlements, collecting payments, and, if necessary, repossessing assets under lawful procedures. Legal Limitations and Guidelines: 1. RBI Guidelines: - Recovery agents must adhere to the Reserve Bank of India (RBI) guidelines to ensure ethical and lawful recovery practices. - Banks must provide proper training and certification to recovery agents before employing them. 2. Code of Conduct: - No harassment or abusive language. - No use of force or intimidation. - Collection calls are restricted to prescribed hours (generally 7 AM to 7 PM). 3. Fair Practices Code: - Recovery agents must identify themselves and provide details of the agency and the bank they represent. - They should respect the privacy of the borrower and avoid discussing debts with unrelated parties. 4. Legal Recourse for Misconduct: - Borrowers can file complaints against recovery agents for harassment or unlawful actions. - Complaints can be made to the bank, the RBI, the police, or the courts, depending on the severity of the violation. 5. Civil and Criminal Liability: - Recovery agents may face civil suits for damages or criminal charges for harassment, trespassing, or intimidation. - Banks can also be held accountable for employing unethical recovery practices. 6. Debt Recovery Through Legal Means: - If recovery agents fail to recover dues amicably, the creditor may file a suit under the Civil Procedure Code, 1908, or approach Debt Recovery Tribunals (DRTs) under the Recovery of Debts and Bankruptcy Act, 1993.

Dear Client, Recovery agents are those persons or agencies specifically appointed by banks and other financial institutions for the purpose of recovering unpaid loans from borrowers. Their duties are to bargain for payback, give defaulters reminders and support the lender in recovering outstanding amounts. However, Indian law severely limits their conduct: 1. They cannot engage in threatening, harassing, or physically forcing borrowers when they are trying to recover debts. 2. They must adhere to RBI’s Fair Practices Code (2007) and the Banking Codes and Standards Board of India (BCSBI) guidelines. 3. Calls or visits can only be at reasonable hours and non-offensive, non-annoying. 4. Misconduct can result in the bank’s recovery licence to be cancelled, and the borrower may complain to the police or seek help from RBI over harassment. So, recovery agents are allowed to collect dues but only if they operate within legal and ethical boundaries. I hope this answer helps. For any further queries, please do not hesitate to contact us. Thank you.