RBI bars lenders from remotely disabling borrowers’ devices for recovery
Effective January 1, 2027, the RBI will prohibit lenders from remotely disabling borrowers’ phones, tablets and laptops to recover dues. Devices financed through the loan are exempt, subject to certified locking technology, phased restrictions and continued access to essential functions.
RBI barred banks from remotely disabling borrowers’ phones, tablets or laptops for loan recovery, except when the device itself was financed. The rule affects consumer-device financing and requires certified locking technology, phased restrictions and access to essential phone functions.
Why this matters
The measure extends RBI’s January 2027 borrower-contact limits for loan recovery and follows its draft scrutiny of NBFCs offering revolving credit without approval.
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