<h1>RBI Revises Guidelines for Bank Recovery Agents to Mitigate Disputes and Risks; Emphasizes Training, Legal Adherence, and Communication.</h1> The Reserve Bank of India (RBI) issued revised guidelines for banks engaging recovery agents due to rising disputes and reputational risks. Banks must conduct due diligence, ensure agents are trained, and adhere to legal procedures for loan recovery. They should inform borrowers about recovery agencies and record agent-borrower communications. Complaints against banks or agents for abusive practices will be taken seriously, with potential bans on engaging agents. Banks are encouraged to use Lok Adalats for small loan recoveries and utilize credit counselors. The RBI emphasizes adherence to guidelines to avoid legal consequences and reputational damage.