# RBI bars banks from locking devices for loan recovery from January 2027

2026-08-09T05:42:00+00:00 | Governance | Indian Opinion Desk

Corroboration: 1 independent outlet

The Reserve Bank of India has issued new rules barring banks and NBFCs from locking borrowers' phones, laptops or tablets to recover unpaid loans, effective January 1, 2027. Recovery agents are also prohibited from accessing personal data, using abusive language, or contacting relatives to intimidate borrowers. The only exception is for loans taken to finance the device itself, and then only after due notice. Borrowers remain liable for all dues, and the rules do not waive repayment obligations. The RBI has directed lenders to set up systems to address financial distress and explain resolution options. The framework aims to replace intrusive recovery tactics with regulated, transparent processes.

## Coverage

- news.abplive.com <https://news.abplive.com/business/personal-finance/repo-rate-stable-but-should-you-take-a-loan-borrowing-habits-explained-financial-goals-1861150>
- livemint.com <https://www.livemint.com/money/personal-finance/missed-a-loan-emi-rbi-s-new-recovery-rules-shield-borrowers-from-harassment-and-device-locking-11786325163889.html>

Tags: credit cards, EMI management, personal finance, RBI repo rate, repayment capacity, smart borrowing
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