DRA Code of Conduct 2026: Rules for Debt Recovery Agents & Telecallers (IIBF

If you are preparing for the IIBF DRA / DRA Telecallers exam. The DRA Code of Conduct is a chapter you simply cannot skip. It is short.

Scoring, and almost guaranteed to appear in your question paper. Yet many candidates lose easy marks here. They memorise it in a hurry and confuse the exact calling hours.

The definition of "family," or what counts as harassment.

This 2026 guide fixes that. We break down the entire Code of Conduct for Debt Recovery Agents into clean. Exam-ready sections — with a quick-facts table, a comparison of allowed vs.

prohibited actions, common mistakes, and a focused FAQ. Read it once. Revise it twice, and this topic becomes a guaranteed scorer.

Want to practise alongside? Take our free mock tests and explore more free guides built specifically for IIBF aspirants.

What Is the DRA Code of Conduct? (And Why It Exists)

A Debt Recovery Agent (DRA). Also called a Recovery Agent (RA). Is a person or agency engaged by a bank to recover overdue loans.

Dues from borrowers. Because these agents deal directly with stressed customers. Their behaviour is tightly regulated.

The Code of Conduct is the rulebook that governs how a recovery agent may contact. Speak to, and follow up with a borrower. It applies not only to outside agencies and their employees. But also to the bank's own staff performing recovery.

Why Was a Code of Conduct Needed for Recovery Agents?

The Code did not appear out of nowhere. It was a direct response to real problems in the banking sector:

• Rising lawsuits: There was a sharp increase in the number of legal cases filed against banks over aggressive recovery.
• Adverse publicity: The involvement of debt collection agents created negative media coverage. Public anger.
• Reputational risk: Regulators recognised this damaged not just the bank concerned. But the reputation of the entire banking system.
• Aggressive incentives: Some banks set very strict recovery targets or offered high incentives. Which pushed agents to use intimidating and dubious methods to collect dues.

Recognising these implications for reputational risk. The regulator reviewed the policy. Practice. And procedures around engaging collection agents. And issued operational guidelines for all commercial banks to follow.

Core Rules: What Banks Were Advised on Loan Recovery

In line with the guidelines. Banks were instructed that in matters of loan recovery. The following principles must hold. These are high-frequency exam points, so learn them precisely.

• Lenders should not resort to undue harassment. No constant calling at odd hours. And no use of muscle power to recover loans.
• Banks must ensure their authorised agents refrain from any action that could damage the integrity. Reputation of the bank.
• Agents must not use intimidation or harassment of any kind. Verbal or physical — against any person during recovery. This includes acts meant to publicly humiliate the borrower. Violate the privacy of the borrower's family. Referees. Or friends, or make threatening/anonymous calls and false or misleading statements.
• Agents must follow the "Code of Bank's Commitment to Customers" (BCSBI Code). Under. Banks strictly adhere to norms relating to the collection of dues. Charges.

Applicability of the Code: Who, When and the Penalty

The Model Code of Conduct for Recovery Agents applies to all RAs appointed by the bank. Four points define how it binds an agent:

1. Part of the agreement: The Code forms part of the formal agreement between the bank. The Debt Collection Agency.
2. Compliance first: The RA must agree to comply with the Code before conducting any recovery operation on the bank's behalf.
3. Blacklisting: Any RA found violating the Code may be blacklisted. Branches/operating units communicate such action to the concerned business group.
4. Monthly reporting: The business group sends this information monthly to the IBA for circulation to member banks. So they can act at their end.

Calling Hours: When and Where an RA Can Contact a Borrower

This is the single most-tested point in the entire chapter. Read the timing carefully.

Even within these hours. The borrower should be contacted only if the call is not expected to be a nuisance. Calls earlier or later than the prescribed time are allowed only under specific conditions:

• The borrower has given written or oral permission to be contacted at that time.
• The borrower has been duly notified by the bank about recall of the loan. The appointment of a recovery agent. And is deliberately evading the agent.
• The time. Number of calls, and content of every conversation is properly documented.

Place of Contact

• The borrower should ordinarily be contacted at a place of their choice.
• If no particular place is specified. They may be contacted at their residence or. Failing that, at their place of employment/business.
• In sensitive situations such as a bereavement in the family or similar catastrophic occasions. Calls and visits must not be made for recovery.

Confidentiality: Can the Loan Be Discussed With Others?

Under normal circumstances. An RA must maintain strict confidentiality about the borrower's loan. The borrower's dues are a private matter.

However. The matter may be discussed with the borrower's family only if the borrower's response to the recall notice. The agent's repeated appeals do not elicit any response.

Who Counts as "Family" Here?

For this purpose, "family" means immediate and adult family members only. The Code specifically includes:

• Husband
• Son and unmarried daughter (including legally adopted)
• Unmarried sister
• Father
• Mother
• Daughter-in-law
• Grandson and granddaughter

How to Contact and Leave Messages Properly

The Code even prescribes how an agent leaves a message when the borrower is not available. The process is structured:

1. First, the agent must call the borrower directly.
2. If the borrower is not available. A message should be left asking the borrower to call back. Or checking whether it is a good time to call again.

If a message must be left with a business associate or a person representing the borrower. The standard wording is essentially:

"(RA name) representing (Name of bank) called and asked to be called back at (given phone number). The purpose of the call is to collect the bank's dues."

Code of Conduct During the Call

Once the borrower is on the line. The agent must follow a clear etiquette checklist. This is another favourite area for direct questions.

• Introduce: The RA identifies itself to the borrower. Confirms its authorisation to represent the bank.
• State the reason for the call clearly.
• Give full information about the dues. The necessary notice so the borrower can pay.
• Offer to call back if the borrower is busy.
• Speak in the language most comfortable for the borrower.
• Business only: Keep the conversation strictly limited to business.
• Reconfirm the next call or next visit.
• Provide contact numbers for both the RA and the bank.
• Give adequate notice before taking over any security and before its realisation.
• Provide all assistance to resolve disputes or differences in a mutually acceptable. Customary manner.
• Strictly avoid any behaviour that suggests criminal intimidation or threats of violence.

Gifts, Cash and Conduct Standards

The Code closes several integrity loopholes that examiners frequently test:

• An RA will not accept any kind of gift or bribe.
• RAs will not accept cash. All collections must be deposited directly into the bank.
• RAs must be appropriately dressed. And decorum must be maintained at all times.
• RAs must furnish the undertaking/pledge as provided in the agreement.
• RAs may use only activities permitted by law in the course of recovery.

Allowed vs. Prohibited: DRA Conduct at a Glance

This comparison table is the fastest way to revise the chapter the night before your exam.

DRA Code of Conduct — Quick Facts Table

How to Study the DRA Code of Conduct (Practical Strategy)

This chapter rewards smart revision, not heavy reading. Use this simple plan:

1. Lock the numbers first. The 08:00 AM – 06:00 PM window is the most-tested fact. Memorise it before anything else.
2. Group the rules. Split the Code into four buckets — when to call. Where to call, what to say, what never to do. Buckets are easier to recall than a long list.
3. Master the "family" list. Write it out twice. Note that only the unmarried daughter and sister are included.
4. Use keyword triggers. Words like blacklist, IBA, BCSBI, bereavement, confidentiality each map to one rule. Examiners build questions around these keywords.
5. Test yourself. Attempt our mock tests on the DRA syllabus and review every wrong answer the same day.

Common Mistakes Candidates Make

• Mixing up the timings. Some write 07:00 AM or 07:00 PM. The standard window is 08:00 AM to 06:00 PM. Always reconfirm on the latest official IIBF notification.
• Including the wrong relatives. Adding a "married daughter," "friend," or "neighbour" to the family list is a classic error.
• Forgetting documentation. Off-hour calls are allowed only when the time. Number, and content are documented — candidates often miss this condition.
• Confusing the codes. The BCSBI Code is a separate "Code of Bank's Commitment to Customers". Don't merge it with the recovery Code itself.
• Overlooking the penalty. Many forget that violations lead to blacklisting. Monthly reporting to the IBA.

Frequently Asked Questions (FAQ)

What are the official calling hours for a DRA?

Telephone contact should normally be limited to 08:00 AM to 06:00 PM. Unless the borrower's business or profession requires otherwise. Or the borrower has permitted other timings. Always verify the exact hours on the latest official IIBF notification.

Can a recovery agent discuss my loan with my family?

Only as a last resort. The agent must maintain confidentiality. But may discuss the matter with immediate adult family members if the borrower gives no response to the recall notice. Repeated appeals.

What happens if a DRA violates the Code of Conduct?

The agent may be blacklisted. The branch reports the action to the concerned business group. Which forwards it monthly to the IBA for circulation to member banks.

Can a recovery agent accept cash from the borrower?

No. RAs cannot accept cash, gifts, or bribes. All recovered amounts must be deposited directly into the bank.

Is the DRA Code of Conduct important for the IIBF exam?

Yes — it is a high-scoring. Frequently tested part of the DRA / DRA Telecallers syllabus. Direct questions appear on calling hours. The family definition, confidentiality, and prohibited conduct.

Final Word: Turn This Chapter Into Guaranteed Marks

The DRA Code of Conduct is one of the friendliest chapters in the entire IIBF DRA syllabus. It is logical. Short.

And built around a handful of rules you can revise in under an hour. Lock the timings. Master the family list.

And remember the golden rule: recover with respect, never with fear.

Study it well, practise with our free mock tests, and walk into your exam confident that these marks are already in your pocket. You've got this.

Related Guides

For more on DRA Code of Conduct. See the official IIBF circulars. Our chapter-wise free notes on iibf.store.

For more on “DRA Code of Conduct”, explore our free mock tests and chapter notes on iibf.store.