The Reserve Bank of India (RBI), in its second draft guidelines on banks' recovery agents, said, "If a customer has filed a complaint, the bank should not forward the case to recovery agents till it has disposed the complaint. However, in cases where the bank has appropriate proof that the borrower is making frivolous/vexatious complaints, it may continue with the recovery proceedings despite the pending complaint."  

"In cases where the subject matter of the borrower's dues might be sub-judice, banks should exercise utmost caution, as appropriate, in referring the matter to the recovery agents, depending on the circumstances," said the RBI.  

The regulator has also suggested that banks use the services of credit counsellors if the borrower deserved sympathetic consideration.  

Banks will also have to periodically update the list of recovery agents on their website and verify their history. They could insist on police verification, besides additional conditions for repossession of assets.  

To meet the training needs of agents across the country, the revised guidelines have suggested that banks tie up with the Indian Institute of Banking and Finance (IIBF) and other institutes and conduct their own courses to ensure that all agents clear the examination conducted by IIBF within a year.