# RBI bans banks from locking borrowers’ phones for recovery 2026-08-07T23:00:16+00:00 | Governance | Indian Opinion Desk Corroboration: 1 independent outlet The Reserve Bank of India has prohibited banks from disabling a borrower's mobile phone, tablet or laptop as a loan recovery tool, except when the device itself was financed by the bank. The revised draft directions, effective January 1, 2027, apply to all commercial banks except small finance banks, payments banks, RRBs and local area banks. Even for financed devices, restrictions can start only after 30 days past due, with full restrictions after 60 days. Incoming calls, SMS and emergency SOS features must never be blocked. Banks must compensate borrowers Rs 250 per hour for wrongful or delayed reversal of restrictions, capped at the loan amount. The rules also require banks to publish lists of empanelled recovery agencies, notify borrowers before agent visits, and restrict contact to between 8 am and 7 pm. Use of abusive language, threats, intimidation of relatives, or posting personal details on social media is banned. ## Coverage - newindianexpress.com - economictimes.indiatimes.com Tags: borrower rights, Digital lending, loan recovery, RBI Canonical: https://indianopinion.org/rbi-bars-banks-from-locking-borrowers-devices-for-recovery/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/rbi-bars-banks-from-locking-borrowers-devices-for-recovery/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes.