Now Reading: RBI Allows Gradual Device Restrictions, Delays Recovery Rules To 2027
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RBI Allows Gradual Device Restrictions, Delays Recovery Rules To 2027
The Reserve Bank of India has deferred its revised loan recovery rules to January 1, 2027, from October 1, 2026, after industry feedback. The framework allows lenders to impose gradual restrictions on…
The Story in Brief
The Reserve Bank of India has deferred its revised loan recovery rules to January 1, 2027, from October 1, 2026, after industry feedback. The framework allows lenders to impose gradual restrictions on EMI-financed phones, tablets and laptops. No restriction is permitted until a loan is at least 30 days overdue and formal notice is served. Graded curbs may follow between 30 and 60 days, but outgoing calls must continue. Full restrictions are allowed only after 60 days.
Incoming calls, SMS and emergency SOS functions cannot be blocked. Lenders must not stop work-related use, access personal data or use uncertified locking software. Devices must be unlocked within an hour of payment, with compensation of Rs 250 per hour for delays, capped at the loan amount. Recovery calls must be recorded, agents trained and borrower information limited to recovery needs. RBI has dropped mandatory website publication of individual agents’ personal details.
The Indian Opinion
The loudest narratives will likely cast this as either a licence for lenders to punish borrowers or a toothless delay for banks. Neither fits the rules. RBI has allowed staged restrictions, but preserved emergency access, work use and privacy safeguards. Recorded calls and limits on data sharing can also make abuse easier to prove. The real test is whether lenders follow the one-hour unlocking rule and pay compensation when they do not.
Sources (2): timesofindia.indiatimes.com, timesnownews.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
