Which Certificate is Required to Become a Debt Recovery Agent in India?

If you want to work as a Debt Recovery Agent (DRA) in India, the most important requirement is the DRA Certificate. This certification is not just a formality—it is a legal mandate by the Reserve Bank of India (RBI) to ensure that recovery agents follow ethical and lawful practices while collecting debts.

This guide explains what a DRA certificate is, why it is necessary, and how you can apply for it step by step.

Who is a Debt Recovery Agent?

A Debt Recovery Agent is a person appointed by banks, NBFCs (Non-Banking Financial Companies), or authorized collection agencies to recover overdue loans or pending payments from borrowers.

However, unlike common perception, recovery agents cannot harass or threaten borrowers. They must strictly follow RBI regulations and act professionally. Their main role is to:

• Communicate with borrowers,
• Negotiate repayment solutions,
• Help financial institutions reduce bad debts,
• Ensure recovery is done in an ethical manner.
  

What is a DRA Certificate?

The DRA Certificate (Debt Recovery Agent Certificate) is issued by the Indian Institute of Banking and Finance (IIBF).

This certificate proves that the person has:

• Completed the mandatory training,
• Passed the DRA exam, and
• Is eligible to work as a certified recovery agent for banks, NBFCs, or asset reconstruction companies.
  

Without this certificate, no financial institution can legally hire you as a recovery agent.

Why is the DRA Certificate Required?

The RBI has made the DRA certificate compulsory for three main reasons:

1. Legal and Ethical Training – Agents are trained in laws like SARFAESI Act and DRT Act, ensuring they know borrower rights. 
2. Reduce Complaints – Certification prevents cases of harassment or misuse during debt recovery. 
3. Protect Both Parties – Borrowers feel secure, and banks get professional agents to handle overdue accounts.

Benefits of Having a DRA Certificate

Earning this certificate brings several career benefits:

• Legal Authorization – Only certified agents can work officially for Banks and NBFCs.
• Better Job Opportunities – Certification improves employability in the financial sector.
• Professional Credibility – Shows that you have legal and ethical knowledge.
• Nationwide Recognition – Accepted by all banks and financial institutions across India.

Validity of the DRA Certificate

• The DRA certificate is valid for 5 years.
• After expiry, you must complete a refresher course and pass the recertification exam from IIBF.

How to Apply for a DRA Certificate Online?

Here’s the step-by-step process:

• Check Eligibility
  • Minimum qualification: Class 10 pass.
  • Graduates need 50 hours of training; non-graduates need 100 hours of training.
• Training
  • Enroll in an IIBF-accredited training center.
    
• Register for Exam
  • Appear for the IIBF DRA exam within 9 months of training.
  • You get 3 attempts to clear the exam.
    
• Pass the Exam
  • You need at least 50% marks to qualify.
• Download Certificate
  • After clearing the exam, download your DRA e-certificate from the IIBF official portal. (Learn Download Process)
• Renewal
  • After 5 years, complete a refresher course + recertification exam for renewal.
    

Final Words

Becoming a Debt Recovery Agent is a professional career choice that requires the right certification. The DRA Certificate from IIBF ensures that you work within RBI guidelines, maintain ethical standards, and build credibility in the banking sector.

If you are planning to enter this field, start by enrolling in the IIBF-approved training program and securing your certificate—it is the first step towards a recognized career as a Debt Recovery Agent in India.