RBI issues revised draft barring phone blocking except financed devices
The Reserve Bank of India (RBI) just rolled out revised draft amendment directions for loan recovery, making it clear that lenders cannot disable or restrict your phone (even if you miss payments) unless the phone itself was bought with a loan.
And even then, they have to wait 90 days after your account becomes overdue, give you a 21-day window to fix things, and send a seven-day notice before taking any action.
Plus, essential features like internet access, incoming calls, emergency SOS services, and public safety notifications cannot be blocked at all.
RBI outlines new loan recovery safeguards
Lenders now have to pause assigning the recovery case to agents if you file a complaint related to loan dues or recovery proceedings.
They are also required to keep call recordings for six months, and recovery agents must complete special training and certification.
The RBI wants more transparency too: lenders will need to publicly list which agencies they use for collections.
These new rules kick in from October 1, 2026 (a bit later than first planned), aiming to make the whole process fairer and less stressful for everyone.