Overview
- The Reserve Bank of India issued final directions on Aug 6–7 that make the rules binding and push the effective date to January 1, 2027 so banks and service providers can make technical and operational changes.
- Lenders may not disable a borrower’s phone, tablet or laptop unless the loan specifically financed that device, and any restriction must follow strict safeguards to avoid harassment.
- For financed devices the regulator requires a phased approach: no restrictions until 30 days past due, graded limits between 30 and 60 days, and full locks only after 60 days while essential services like incoming calls, SMS and SOS remain available.
- Regulated entities and third parties must obtain OEM or operating‑system certification for device‑locking tools, restore functionality ordinarily within one hour after dues are cleared, and pay ₹250 per hour for delays capped at the outstanding loan.
- The rules also tighten agent conduct, require recorded retention of recovery communications, limit data disclosure to what is necessary, exempt lenders’ own employees and routine instalment collectors, and accept industry feedback on phased certification and disclosure rules.