RBI sets 2027 rules for remotely restricting financed phones after EMI defaults

Effective January 1, 2027, lenders may gradually restrict only the device tied to a defaulted loan. Calls, SMS, emergency access and borrower data must remain protected; fully repaid devices must be unlocked within an hour or lenders owe Rs 250 per hour.

— Source published Sat, 15 Aug, 2026, 17:50 IST · First seen Sat, 15 Aug, 2026, 18:06 IST · Source Times of India · Business

What happened

Reserve Bank of India · RBI’s final loan-recovery rules permit gradual restrictions only on devices financed by the defaulted loan, while protecting calls, SMS,

Key facts

  • January 1, 2027
  • 30 days overdue
  • 30-60 days overdue
  • more than 60 days overdue
  • Rs 250 per hour compensation
  • 2024
  • 2025

Why this matters

Retailers, OEMs and financiers may pursue tighter partnerships or technology acquisitions to build compliant remote-restriction, data-protection and rapid-unlock infrastructure.