The Reserve Bank of India has issued the Third Amendment Directions for Non-Banking Financial Companies (NBFCs) regarding responsible business conduct. The focus is on guidelines for engaging recovery agents to ensure ethical practices.
RBI Releases Third Amendment for NBFCs on Responsible Business Conduct
On August 6, 2026, the Reserve Bank of India (RBI) promulgated the Third Amendment Directions concerning Responsible Business Conduct for Non-Banking Financial Companies (NBFCs). This legislative update provides critical instructions for NBFCs regarding the engagement of recovery agents.
The amendment incorporates various aspects outlined in Chapter III of the RBI's Responsible Business Conduct directives. It emphasizes the need for fair and humane treatment of borrowers by recovery agents, ensuring practices are transparent and compliant with regulatory expectations.
Legal professionals representing NBFCs should closely monitor these amendments to align their operational strategies with the new guidelines, as non-compliance could lead to regulatory scrutiny and penalties.
Citations
- Reserve Bank of India Directions (2026)