The Reserve Bank of India has issued its Fourth Amendment Directions for Commercial Banks regarding their Responsible Business Conduct, with updated guidelines for recovery agent engagement.
Fourth Amendment on Commercial Banks Responsible Conduct
On August 6, 2026, the Reserve Bank of India published the Fourth Amendment Directions concerning the Responsible Business Conduct of Commercial Banks. The amendment adjusts instructions on the engagement of recovery agents.
This update imposes strict guidelines to ensure that recovery processes are performed ethically and do not exploit borrowers. It reflects a broader commitment to maintaining fair practices across the banking sector.
Practitioners advising Commercial Banks need to familiarize themselves with these requirements to ensure seamless compliance and avoid potential legal ramifications that could arise from non-compliance with the amended directions.
Citations
- Reserve Bank of India (Commercial Banks - Responsible Business Conduct) Fourth Amendment Directions (2026)