How is RBI making lives easier for borrowers?


What's your greatest fear as a borrower? Is it the relentless calls from creditors, the prospect of them showing up at your doorstep, or the concern that your loved ones might be harmed? These fears are all valid, and at FREED, we understand and empathize with them. What's even more important is that the Reserve Bank of India (RBI) now recognizes these situations and, in a commendable move, has proposed new regulations to protect borrowers from the various challenges they face during debt collection.

According to a recent study by Bankrate, approximately 48% of the Indian population is stressed due to their debt. This debt-related stress not only affects an individual's financial well-being but also has a significant impact on their mental and emotional health. To alleviate this situation, RBI has put forth three changes that could significantly reduce this percentage and contribute to a healthier financial ecosystem.

1. No Calls Before 8 AM or After 7 PM: Many borrowers have complained about receiving calls late at night or early in the morning, which adds unnecessary stress to their already challenging financial situations. In response to these concerns, RBI has proposed a solution that restricts recovery agents from calling borrowers before 8 AM or after 7 PM. This change respects borrowers' right to privacy and ensures they have a peaceful morning and evening to focus on their personal lives and responsibilities. It is a welcome move that aims to bring a sense of normalcy to the lives of individuals struggling with debt.

2. No Intimidation or Harassment: Threats like, “If you don't repay, I will cause harm to you and trouble your family as well.” are all too common and leave borrowers in a state of uncertainty. Such intimidation and harassment, whether physical or verbal, can cause severe emotional distress and exacerbate the already challenging experience of managing debt. To address this issue, RBI suggested that regulated entities and their agents must not resort to intimidation or harassment of any kind. This proposed regulation underscores the importance of treating borrowers with dignity and respect throughout the debt collection process. It sends a clear message that the debt collection process should be fair and just, without any room for intimidation or bullying tactics.

3. No Inappropriate Messages: In today's interconnected world, maintaining a good social image is essential. Unfortunately, sending inappropriate messages on mobile or social media is a common practice in the market. Borrowers often find themselves on the receiving end of messages that not only add to their stress but also harm their personal and professional relationships. In a step toward a more secure future, RBI has proposed that regulated entities and agents should refrain from sending such messages. This regulation not only protects borrowers from emotional distress but also upholds their reputation in the digital sphere. It acknowledges the importance of maintaining personal dignity and privacy, both online and offline.

RBI's suggestions are praiseworthy and reflect a progressive approach to debt collection practices. These proposals prioritize borrower safety, dignity, and peace of mind. By addressing the challenges borrowers face, these regulations aim to create a more conducive environment for managing debt and ultimately reducing the stress associated with indebtedness.

At FREED, we applaud these changes and are committed to supporting borrowers in their debt free journey. Our relationship managers ensure that you are protected from harassment calls and receive the support you need to regain control over your financial well-being. If you're in debt and seeking help, don't hesitate to reach out to us. Get your free debt evaluation here : . We are here to assist you on the path to a debt-free, stress-free future.

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