Verifying a recovery agent's identity and authorisation

When someone calls, messages, or arrives at your door claiming to be a "recovery agent," it is natural to feel a jolt of fear and to assume you must immediately explain yourself and pay. Please pause. You are allowed to slow down. Before you discuss your loan, your finances, or any payment with anyone, you have a simple and powerful right: the right to know exactly who you are dealing with and whether the lender has actually authorised them to recover from you.

This is not about avoiding a genuine debt. Repaying what you fairly owe is reasonable. This is about protecting yourself from two very real dangers — impostors who impersonate recovery agents to extract money, and agents who, even if real, operate outside the limits the Reserve Bank of India (RBI) sets. Verifying identity and authorisation is the calm, dignified first step that puts you back in control of the conversation.

Why verification matters before anything else

Loan recovery in India is governed by the RBI's Fair Practices Code and its directions on the engagement of recovery agents. A core principle is that the lender — a bank or non-banking financial company (NBFC) — remains fully responsible for the conduct of anyone recovering on its behalf, including third-party agencies and tele-callers. The lender cannot wash its hands by saying "that was an outside agent."

Flowing from this responsibility, RBI expects lenders to inform borrowers of the details of the recovery agency acting for them, and expects agents to be able to identify themselves. A recovery agent who cannot tell you which agency they represent, which lender they act for, and which specific loan account they are calling about is either disorganised or not genuine. Either way, you owe them nothing until you can confirm the basics.

There is also a fraud dimension. Scammers routinely pose as recovery agents, quoting vague "dues" and demanding immediate payment to a personal account. They rely on your fear and your assumption that anyone mentioning a "loan" must be legitimate. A two-minute verification habit defeats most of these attempts.

The four things a genuine agent should be able to tell you

When contact is made, you can calmly ask for four pieces of information. You do not need to be aggressive; a steady, polite tone works best.

• Their full name and the name of the recovery agency they work for.
• The name of the lender (bank or NBFC) on whose behalf they are acting.
• Your specific loan account number or reference, so you can match it to your own records.
• The outstanding amount they claim is due, and how it is calculated.

A genuine agent representing a regulated lender will generally be able to provide these. If the person becomes evasive, angry, or refuses to name the agency or lender, that refusal is itself information. Note it down. You are entitled to say, politely, "I am happy to discuss this once you confirm your identity and authorisation in writing."

Ask for the authorisation letter and identity proof

Beyond a verbal claim, you can ask for documentary proof, especially if someone visits your home or workplace.

• An authorisation letter from the lender, showing that this agency (and ideally this individual) is engaged to recover on the specified loan account. This connects the person standing in front of you to the actual lender.
• A photo identity card issued by the recovery agency, with the agent's name and the agency's name.

If a person arrives at your door, you are within your rights to ask them to show identification before you discuss anything, and to decline a discussion if they cannot. You are not obliged to invite anyone in, hand over documents, or pay cash to a stranger merely because they assert you owe money. Keeping the conversation at the threshold, calm and brief, is perfectly acceptable. For more on your specific protections during an in-person visit, see our blog guides on home visits and what to say.

Cross-check against the lender — independently

The most reliable verification does not come from the agent at all; it comes from checking independently. Take the details they gave you and confirm them through channels you control, not through a number the agent hands you.

• Confirm the lender is RBI-registered and is genuinely one you borrowed from. You can cross-check a lender's registration and details using our lender check tool. A surprising number of harassment cases involve entities that are not properly registered, or apps that merely front for a regulated lender — and the registration status changes how you respond.
• Match the loan account number the agent quoted against your own loan agreement, Key Fact Statement (KFS), and statements. If the number does not match anything you recognise, be very cautious.
• Contact the lender through its official website or your loan documents, not through a phone number the caller provides, and ask the lender to confirm whether this agency is authorised for your account.

This independent cross-check is what separates a careful borrower from an easy target. Scammers cannot survive it, because the lender will not confirm an account or agency that does not exist.

Red flags that signal an impostor or a coercive agent

Some signs should immediately raise your guard. None of these belong in legitimate recovery:

• Demands to pay a personal UPI ID, a personal bank account, or "cash on the spot" to an individual. Genuine repayments go to the lender's official account or recognised channel, never to a random person.
• Refusal to identify the agency or lender, or shifting, inconsistent answers about who they are.
• Pressure to pay "right now" before you can verify, often paired with threats that "it will be too late."
• Threats, abuse, or intimidation, or contacting your relatives, employer or neighbours to shame you — these are not recovery; they are harassment and, in some cases, offences under the Bharatiya Nyaya Sanhita (BNS).
• An account number or amount that does not match your records, or a "loan" you do not recognise at all.

If you notice these, you are not being paranoid. You are being sensible. Do not pay, and do not share OTPs, card details, or banking credentials with anyone.

Keep everything in writing and build your record

Verification works best when it is documented. Ask the agent to put their identity and the demand in writing — to your registered email or postal address. A genuine agency can do this; an impostor usually will not. Meanwhile, keep your own record:

• A simple log of date, time, the number that called, the agent's stated name and agency, and what was said.
• Screenshots of any messages, and copies of any authorisation letter or ID shown to you.
• Notes of any visit, including who came and what they claimed.

Storing these privately, in one place, matters when you are stressed and may need to refer back. You can keep your call logs, screenshots and loan papers organised securely using the document locker, so that if you later need to complain or seek help, your evidence is ready.

What to do if verification fails

If the person cannot or will not verify their identity and authorisation, you have clear, free options and you do not need to confront them.

1. Do not pay anyone you cannot verify. Politely end the conversation and say you will deal only with the lender directly.
2. Confirm with the lender independently using its official details, and ask whether the agency is authorised for your account.
3. Complain in writing to the lender's grievance officer if a real lender's agent is misbehaving or cannot be verified, describing the conduct and attaching your log. Quote the RBI Fair Practices Code requirement that you be informed of recovery agency details.
4. Escalate to the RBI Ombudsman through cms.rbi.org.in if the lender does not resolve the matter within 30 days, and report unfair practices on the Sachet portal (sachet.rbi.org.in). Both are free.
5. If it appears to be a scam or there are threats, you can report to the police, and for online or app-based fraud and harassment, the cybercrime helpline 1930 and cybercrime.gov.in are available.

If you need legal help but cannot afford it

You can do all of the above yourself, free of cost. But if your situation escalates — a court notice, a serious threat, or persistent harassment — and you cannot afford a lawyer, remember that free legal aid is your right in India. Under Article 39A of the Constitution and the Legal Services Authorities Act, 1987, eligible people receive free legal assistance through the National, State and District Legal Services Authorities. Eligibility is by income or category — women, members of Scheduled Castes and Scheduled Tribes, and several others qualify, and the income limits cover many ordinary borrowers. You apply at your District Legal Services Authority (DLSA). Our free legal aid guide explains exactly how.

A calm closing thought

Asking "who are you, and who authorised you?" is not rude, and it is not an admission of anything. It is the most basic, sensible thing a careful person does before discussing money. A genuine agent acting for a genuine lender can answer those questions; an impostor cannot. By verifying first, in writing, and cross-checking independently, you protect yourself from fraud, keep harassment at bay, and ensure that any repayment you make goes to the right place for the right amount. The fear that someone is counting on melts the moment you ask, calmly, for proof.

This is general information, not legal advice. Rules and procedures can change, and your situation may have specific facts that matter. For advice on your own case, consider free legal aid through NALSA/DLSA or a qualified professional.