The Reserve Bank of India has introduced the Third Amendment to the Responsible Business Conduct Directions for All India Financial Institutions, updating guidelines related to recovery agent operations.
RBI's Third Amendment on Responsible Business Conduct for AIFIs
On August 6, 2026, the Reserve Bank of India released the Third Amendment Directions for All India Financial Institutions (AIFIs) concerning their Responsible Business Conduct. This amendment provides new guidelines regarding the responsibilities of AIFIs when engaging recovery agents.
This update reflects the RBI's continuous effort to enhance accountability and transparency among AIFIs, ensuring that the operations involving recovery agents are ethically sound and compliant with current regulations.
Legal professionals advising AIFIs must ensure adherence to these updated guidelines to avoid consequences stemming from irregularities in recovery practices that may lead to legal challenges or regulatory action.
Citations
- Reserve Bank of India (All India Financial Institutions - Responsible Business Conduct) Third Amendment Directions (2026)