RBI mulls lenders locking financed smartphones after 90 days
RBI is thinking about letting lenders lock smartphones financed by a loan if you don't pay up within 90 days.
But don't worry, they can only do this after sending you several reminders, and the rule has been tweaked based on feedback since it was first floated in February 2026.
Notices, limited services and quick unlock
Lenders have to notify you after 60 days of missed payments, then give a 21-day grace period and a final 7-day warning before locking your device only after it is 90 days past due.
Even then, things like internet access, SOS calls, and incoming calls will keep working.
If you clear your dues, the lock must be lifted within 1 hour, and gone for good once the loan is settled.
Penalty ₹250 hourly and complaint channel
If lenders wrongly lock your phone, they'll have to pay ₹250 per hour until it's fixed.
Plus, they need an easy way for you to complain if something goes wrong, so borrowers aren't left helpless.