Banks cannot disable borrower mobile phones and laptops for loan recovery. This new rule applies unless the devices themselves were financed by lenders. The Reserve Bank of India announced these regulations will take effect January 1, 2027. Banks must adopt a gradual approach when disabling devices, not immediately. Essential functions like incoming calls and emergency services remain accessible to borrowers.

RBI introduces stricter loan recovery rules from January 2027, limiting contact hours, protecting borrowers and regulating mobile device restrictions.

Banks cannot disable borrower mobile phones and laptops for loan recovery. This new rule applies unless the devices themselves were financed by lenders. The Reserve Bank of India…

The Reserve Bank of India has updated its regulations on mobile loan financing. Lenders are now required to reinstate device functionality within one hour of confirmation of…