1. What Does RBI Require?

Old Regime:

• RBI/2007-2008/296 dated 24.04.2008 - Guidelines on Fair Practices Code for Lenders
• RBI/2022-23/108 dated 12.08.2022 - Recovery agents must not use abusive language, calling hours 8 AM to 7 PM only
• Banks remain responsible for ensuring recovery agents comply

New Unified Regime - Effective 1 January 2027:
On 6 August 2026 RBI issued 9 circulars creating a unified framework:

• RBI (Commercial Banks - Responsible Business Conduct) Fourth Amendment Directions, 2026
• RBI (NBFCs - Responsible Business Conduct) Third Amendment Directions, 2026

Key clauses:

454P. A bank shall document the time and number of calls made by its employee / recovery agent to the borrower / guarantor for recovery of loan dues. Further, the bank shall ensure that there is a recording of the content / text of the calls

100P. An NBFC shall document the time and number of calls made...

Operational rules:

• Every call must be recorded and kept for 6 months
• If case is pending in court, till case is resolved
• Record timing, frequency, phone number, and content/text
• Borrower must be told call is being recorded
• If bank cannot produce records on request, it is a violation
• Lender must maintain records including recordings for at least six months

2. Why Failure to Maintain is Fatal

A. Adverse Inference: If borrower alleges threat / abuse at 9 PM and bank says "no record", consumer forums draw adverse inference under Section 106 Evidence Act - fact especially within bank's knowledge.

B. Evidentiary Failure under Section 65B Indian Evidence Act: Call Detail Records (CDR) without certificate and without proof of issuing authority cannot be considered. In debt recovery cases, prosecution relying heavily on CDR showed about 40 calls but Supreme Court held CDR has little evidentiary value in absence of specific material.

C. RBI Penalty.

3. Case Laws

1. Manager, ICICI Bank Ltd. vs Prakash Kaur & Ors. (2007) 2 SCC 711 - Supreme Court of India - Landmark

Date: 26.02.2007. Bench: Dr. A.R. Lakshmanan and Altamas Kabir.

Facts: Truck loan default. Instead of legal recovery, bank dispatched agents from M/s Kartik Associates who forcibly seized truck.

Held: The Court deprecated practice of hiring recovery agents who are musclemen. Recovery should be only through legal means. Bank cannot employ 'Goondas' to take possession by force.

Relevance to call records: This judgment forced RBI to issue 2008 guidelines. Failure to maintain records = cannot prove you followed due process. The first step to recovery is through so-called recovery agents, a very dignified term used for paid recovery agents

2. HDFC Bank Ltd. vs Rajender Jaina & Ors. 11 March 2008 - National Consumer Disputes Redressal Commission

II(2008)CPJ90A(NC)

Borrower registered on Do Not Call Register maintained as per TRAI regulations by NIC, yet receiving calls. Bank could not produce call logs showing consent or time. Held deficiency in service.

3. Sarwar Raza vs Citibank - Delhi High Court W.P.(C) 16659/2022 - 2024 judgment

Advocate issued credit card without request, Rs.76,777 fraud. Even after reporting fraud and court protection, bank sent recovery agents.

Held: Delhi High Court fined Citibank Rs. 1 lakh for harassment through recovery agents and wrongful demands. Court said intention was to ensure Citi Bank does not trouble customers in this manner, especially when person is victim of cyber fraud. Bank failed to produce recordings proving civil recovery conversation.

4. Gunjan Mehta vs Citibank - District Consumer Forum, Chandigarh - 26 June 2009

Finding gross deficiencies in working of Citibank, District Forum awarded Rs 1 lakh compensation for physical and mental harassment. No call records maintained to disprove harassment.

5. RBI Penalty on Axis Bank - Rs. 90.92 lakh - Order dated 02.11.2023

RBI imposed penalty for non-compliance with Guidelines on Managing Risks and Code of Conduct in Outsourcing. Specifically highlighted Axis Bank's persistent calls to customers causing privacy concerns and failure to ensure appropriate conduct of recovery agents. Also noted bank failed to ensure appropriate behaviour of recovery agents.

6. RBI Penalty on Bajaj Finance Ltd - Rs. 2.5 crore - 05.01.2021

RBI imposed penalty as NBFC failed to ensure its recovery agents did not resort to harassment or intimidation. Core evidence failure was absence of call recording to prove compliant tone.

7. Citi Bank N.A. vs P. Ranganathan - II Additional District Forum Bangalore Complaint No. 2693/2009

Recovery agent behaved rudely with complainant and wife. Bank could not produce audio/text record - held liable.

8. Delhi High Court on Preservation of Call Records - Complainant's Privacy Concern Can't Come In Accused's Way

Delhi High Court ruled privacy concern of complainant cannot come in way of accused seeking preservation of Call Detail Records claimed to be exculpatory evidence. Establishes right to demand preservation - failure to preserve = spoliation.

4. Consequences if You Don't Maintain

1. Compensation: Rs. 30,000 to Rs. 1,00,000 for mental agony + litigation cost + refund. Delhi HC also proposes Rs.250 per hour compensation for wrongful phone restrictions.
2. RBI Monetary Penalty: Rs.90 lakh to Rs.2.5 crore per instance.
3. License Risk: Engagement of uncertified agents after 01.01.2027 is violation - agents must have IIBF certificate.
4. Criminal Complaint: If calls involve intimidation, IPC 506 can be invoked. Nivedita Sharma vs Cellular Operators Association (2011) SC 1193.

5. What a Compliant Call Record Must Contain (Checklist from RBI 2026)

• Timestamp of each call attempt and connected call
• Borrower's number and agent's number (no anonymous calls)
• Duration
• Full audio recording + transcript/text
• Name and contact of designated grievance officer in communication
• Retention log for 6 months minimum, extended if litigation/complaint pending
• Notice to borrower that call is recorded

If you are a bank/NBFC: Integrate call recording with your collection platform. If you are a borrower: In complaint to RBI Ombudsman, specifically write - "Please direct bank to produce 6-month call recordings under Para 454P / 100P of RBI Directions 2026 and CDR with 65B certificate." Their inability to produce becomes your strongest evidence.