RBI plans rules to restrict phone blocking after EMI default
Business
The Reserve Bank of India (RBI) is planning new rules to make loan recovery fairer, especially for people who buy phones on EMI.
Banks won't be allowed to block your device right after you miss a payment. Instead, they'll have to wait 90 days, plus give you a 21-day notice and a seven-day warning first.
Banks pay ₹250 for mistaken blocks
If your phone gets blocked by mistake, the bank will owe you ₹250 for every hour it's locked.
Recovery agents can't call during sensitive times like weddings or funerals, and all their calls must be recorded and kept for six months.
Plus, banks have to tell you which agency is contacting you and make sure agents are properly certified, so things stay transparent and respectful.