RBI bars banks from shutting off devices to curb harassment
The Reserve Bank of India (RBI) just made a big call: starting January 1, 2027, banks can't shut down your mobile phone, laptop, or tablet if you miss loan payments, except when the device itself was financed by the bank or lender through a loan.
This move is meant to stop harassment, including via social media platforms and abusive language, that borrowers have been complaining about.
Phased restrictions allowed on financed devices
If the device was actually financed by the bank through a loan, they're allowed to restrict some features, but only step by step.
Essential stuff like calls, texts, and SOS will always work.
Plus, any tech used for locking devices must be secure and approved by the manufacturer or OS provider.
The RBI also told banks to keep your data private and only share what's truly needed for loan recovery.