# RBI bars harassment, limits device locks after loan defaults 2026-08-15T08:56:18+00:00 | Governance | Indian Opinion Desk Corroboration: 2 independent outlets A missed EMI does not immediately allow a bank to seize property or assets, Mint reports. For secured loans, lenders must follow legal procedures, including a 60-day demand notice under the SARFAESI Act after an account becomes a non-performing asset. Recovery agents cannot threaten, abuse, shame borrowers or make calls before 8 a.m. or after 7 p.m. Banks remain responsible for outsourced agents. The Times of India reports that RBI’s final recovery framework, effective from January 1, 2027, will allow gradual restrictions only on a device financed through that specific loan. Restrictions cannot stop calls, SMS, emergency services or work-related functions. Lenders cannot access contacts, photos or call records. Devices must be unlocked within an hour of payment, with compensation of Rs 250 per hour for delays, up to the loan amount. ## Coverage - livemint.com - timesofindia.indiatimes.com Tags: India, RBI, SARFAESI Act Canonical: https://indianopinion.org/loan-default-does-not-permit-instant-property-seizure-or-harassment/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/loan-default-does-not-permit-instant-property-seizure-or-harassment/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes.