New RBI recovery rules take effect on 1 January 2027. They change how lenders can pursue you, not what you owe. Here is what that means for your settlement.
See What ChangesRBI notified amendments on recovery conduct on 6 August 2026 for lender categories including commercial banks, NBFCs and housing finance companies. This table summarises the main points. Details can differ by type of lender, so check the final text that applies to yours.
| Area | What the rules say |
|---|---|
| Contact hours | Calls and visits limited to 8 am to 7 pm, unless the borrower or guarantor asks otherwise. |
| Who can be contacted | Discussions ordinarily confined to the borrower or guarantor. Pressuring relatives, friends or co-workers is prohibited. |
| Harassment | Harsh practices are prohibited, including threats, abusive language and excessive calls or messages. |
| Call records | Recovery calls must be recorded or documented and preserved, generally for six months. |
| Recovery agents | Agents need certification from the Indian Institute of Banking and Finance. |
| Compensation | Lender policies must provide compensation for losses from recovery action that breaks the directions. |
| Device locking | Restricting a phone or laptop is allowed only in limited cases, and the lender cannot access personal data on it. |
Before you make an offer, read how settlement percentages work and the effect on your CIBIL score.
Saturday, 12 December 2026
Next National Lok Adalat
1 January 2027
RBI recovery conduct directions take effect
February to March 2027
Banks work towards financial year-end recovery targets
31 March 2027
Financial year ends
National Lok Adalat dates for 2027 had not been published when this page was last updated.
Process, negotiation and your options.
How settling card dues works.
What decides how much you pay.
Building your strongest offer in 2027.
Breaking up your card balance.
Checking who your lender really is.
When it helps, and when it does not.
Checks to make before you pay anyone.
Keep call logs, messages and the names of anyone who contacted you. Complain to the lender in writing first, then escalate if it does not resolve the problem.
We found no new law that gives borrowers a right to settlement in 2027. The main change is to how lenders may recover dues: RBI's recovery conduct directions take effect on 1 January 2027.
Published summaries of the directions say borrowers may be contacted between 8 am and 7 pm, unless the borrower or guarantor has asked to be contacted at another time.
Yes. Settlement is a negotiated arrangement decided under the lender's board-approved policy. It is not available to a borrower as a matter of right.
No. Lenders decide case by case under their own policies. Read our guide on how settlement percentages work before you accept or make an offer.
Published summaries say recovery discussions should ordinarily be confined to the borrower or guarantor, and pressure on or harassment of relatives, friends or co-workers is prohibited.
Published summaries say a lender cannot ordinarily restrict a device. A limited exception applies where the lender financed that device, the agreement clearly allows it and the borrower received notice, with incoming calls and emergency functions kept working.
Lenders must apply a cooling period before fresh credit to a borrower whose account was settled. It is set by board-approved policy and is reported as at least 12 months for non-farm loans.
Do not delay just for the date. The new rules govern recovery conduct and do not reduce what you owe, while interest and legal action may continue. Start when you have a realistic offer and documents ready.
This page is general information, not legal advice on your specific case. Last updated 10 November 2026.
Speak to our team about your lender and account.
Call +91-8700343611Request Callback