RBI curbs lenders' remote device locking for EMI defaulters
Big update from the Reserve Bank of India: Starting January 1, 2027, banks and lenders can no longer remotely lock or disable your smartphone, tablet, or laptop if you miss EMI payments, except to recover its loan dues arising out from financing of such a device.
This move is all about making loan recovery fairer and less stressful for people who buy gadgets on installments.
RBI mandates disclosure, device loan exception
The RBI wants to protect consumers from tech-based harassment and ensure borrowers know their rights.
Lenders will have to be up front about any tech they use for loan recovery from January 1, 2027.
The only exception? Loans taken specifically to buy the device itself.
Overall, it's a win for anyone who's ever worried about losing access to their devices just because of a payment hiccup.