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Coercive loan recovery tactics under RBI lens

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MUMBAI : The Reserve Bank of India (RBI) is set to issue an advisory cautioning lenders against using aggressive tactics to collect payments following complaints that some app-based lenders are using outright dodgy tactics to get borrowers to repay, a person aware of the development said.Social media platforms have been abuzz for the past few weeks with complaints that some app-based lenders have been harassing small borrowers who have fallen behind on their payments by calling their phone contacts and texting abusive messages.

While the number of such complaints has exploded on Twitter and Facebook, only a few have reached out directly to RBI’s ombudsman for digital transactions, the person cited above said on condition of anonymity.While.

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