The RBI on Friday cracked down on harsh methods used by loan recovery agents when it said that banks and other entities such as NBFCs should ensure that they or their agents do not resort to intimidation or harassment of any kind for collection of overdue loans.

The RBI said the recovery agents should avoid calling the borrower persistently, even as it also fixed a specific time for any calls that may have to be made to a borrower.

The banking regulator said that borrowers should not be called before 8 am or after 7 pm for recovery of any dues.

While the central bank has been issuing directions in this regard since 2003, its latest action comes as complaints continue to mount against strong-arm tactics employed by some of the agents that are usually outsourced by banks.

Recently a teenager reportedly committed suicide in Andhra Pradesh after loan recovery agents allegedly harassed her family for not repaying a bank loan.

Speaking at an event in June, RBI governor Shaktikanta Das said that using harsh methods like calling at odd hours or foul language is unacceptable and it will take stern action if entities that are regulated by it are involved.

“We have taken serious note of such instances and will not hesitate to take stringent action in cases where regulated entities are involved. Such complaints will have to be taken up with appropriate law enforcement agencies,’’ he had said.