RBI retained safeguards to protect borrowers even as it allowed operational flexibilityMUMBAI: RBI has eased its proposed norms on device disablement for EMI-financed gadgets and relaxed disclosure requirements for recovery agents after industry feedback, while retaining safeguards for borrowers.In its revised directions on conduct of regulated entities and engagement of recovery agents, RBI has allowed lenders to impose gradual restrictions on mobile phones, tablets and laptops financed through EMIs, replacing the earlier proposal that barred such action until a loan turned 90 days past due.According to the final norms, lenders cannot impose any restriction until a loan is at least 30 days past due and a formal notice has been served. Between 30 and 60 days past due, lenders may introduce graded curbs on device functionality, although outgoing calls cannot be blocked during this period. Full contractual restrictions can be enforced only after a loan crosses 60 days past due.RBI retained safeguards to protect borrowers even as it allowed operational flexibility. Incoming calls, SMS and emergency SOS features cannot be blocked under any circumstances. Restrictions must not prevent borrowers from carrying out work or employment-related activities.Lenders and their service providers must obtain certification for locking software from the original equipment manufacturer or the operating system platform. RBI has also barred lenders from accessing personal data such as contacts, call logs, photos, location history or SMS. Devices must be unlocked within one hour of funds realisation. Lenders must compensate borrowers at Rs 250 per hour for delays, capped at the loan amount disbursed.RBI has also diluted its earlier proposal requiring banks to publicly disclose granular details of individual recovery agents. Industry participants had flagged high attrition among recovery personnel and the operational burden of maintaining updated records. Accepting these concerns, RBI has dropped the requirement to publish names and personal details of individual agents on bank websites.Among other changes, RBI has deferred the implementation date of the norms to Jan 1, 2027 from Oct 1, 2026 and allowed a one-year transition period for certification of recovery agents through Indian Institute of Banking and Finance for newly covered entities.However, RBI has not allowed uncertified recovery agents to interact with borrowers before obtaining mandatory certification.