RBI recovery rules restrict when and how lenders contact borrowers. The August 2022 recovery-agent circular prohibits overdue recovery calls before 8 am or after 7 pm, persistent calling, intimidation, misleading statements and intrusion into family privacy. Covered lenders remain responsible for outsourced agents. The circular includes NBFCs but excludes microfinance loans governed by separate directions. See the RBI circular of 12 August 2022.

This guide focuses on recovery-call operations, not every requirement applicable to lending. Confirm the current directions for your institution and loan category with your compliance team before implementing a campaign. Sources checked on 28 September 2026.

Recovery calling hours: check the loan category first

For the microfinance framework, RBI's FAQ explains that the restriction on calls before 9 am or after 6 pm applies to recovery from borrowers with overdue loans. It distinguishes these from regular-account activities and meetings arranged for borrowers' convenience. See RBI's microfinance FAQ, question 10.

These are different regimes. Do not configure one universal calling window just because all accounts belong to the same NBFC. Have your policy owner identify the applicable category before the account enters an automated queue.

An operational checklist for NBFC collections heads

The following is a suggested implementation checklist, not a list of additional RBI mandates or a claim of regulatory certification.

Classify the account. Record the loan category, overdue status, lender and policy version. If classification is missing, send the account for review before scheduling calls.
Apply the approved schedule at dial time. Recheck the window when each call is placed, including retries and queued calls. A campaign created during permitted hours can still run beyond them.
Control repeated contact. Combine AI, agency and internal calling history so each system cannot independently restart attempts. Let the lender set escalation and retry limits.
Review the conversation. Use an approved introduction, verify the intended recipient before discussing account information, and test scripts for pressure, threats and unsupported claims.
Handle exceptions. Route wrong numbers, disputes, vulnerability concerns and requests for help to trained staff. Give staff a way to pause further automated contact.
Preserve evidence appropriately. Agree on which event logs and records to retain, who can access them and when they should be deleted under the applicable policy.

What to test before an AI recovery campaign goes live

Use synthetic borrower data in the initial test. Schedule a retry close to the end of the approved window and confirm the system blocks a late attempt. Put one account in both the agency queue and the AI queue and check whether contact history is shared. Ask the agent to handle a wrong number, a disputed balance and a request for a human.

For Hindi and regional-language calls, have a fluent reviewer check whether the script preserves the same meaning. A translated phrase can sound more forceful than its English version. Inspect the payment amount and date written back to the LMS, not just the transcript.

Keep the results as a launch record with an owner for each unresolved issue. Software settings alone do not establish compliance; the lender must approve and oversee the operating process.

Connecting call controls to verified outcomes

A promise to pay records an intention, not a recovered payment. Track confirmed commitments separately from payments received, disputes and failed contacts. This gives collections teams a clearer basis for evaluating both human and automated workflows.

Read how AI collections calls work for NBFCs, explore AI calling agents in India, or review DubCall's outcome-based pricing. To assess a specific portfolio, book a workflow review covering loan categories, languages, integrations and human escalation.