RBI bars banks blocking devices over missed EMIs Jan 2027
The Reserve Bank of India is stepping in to protect borrowers from aggressive loan recovery tactics.
Starting January 1, 2027, banks won't be allowed to restrict or disable device functionalities like your phone, laptop, or tablet just because you missed an EMI, except when the loan was taken specifically to finance that device, and even then the bank must take a gradual approach.
Essential functions such as incoming calls, SMS, and emergency SOS must remain accessible.
This change comes after people raised concerns about harassment and unfair practices.
Banks may restrict only financed devices
Banks can only restrict a device if the loan was specifically for buying it; even then, they must keep essential features like calls and emergency SOS working.
Plus, lenders will be required from January 1, 2027, to use certified tech for any restrictions and share only necessary borrower info with recovery agents.
The RBI hopes these rules will make loan recovery more transparent and respectful of your rights.