The Reserve Bank of India (RBI) plans new rules to protect borrowers. Under the RBI proposal on mobile phones, banks cannot fully block a customer’s phone for unpaid personal, home, or vehicle loans.
The RBI proposal on mobile phones allows lenders to limit only some phone features. This rule applies only if the borrower bought the phone through the same lender.
Banks must wait 90 days before taking action. They also need to send notices to customers before limiting services.
RBI said key services must continue without interruption. Customers should still receive internet access, incoming calls, emergency SOS support, and government alerts.
The central bank also warned lenders against harassment. Banks should avoid repeated calls, threats, and pressure on social media during loan recovery.
Lenders must restore services quickly after payment. Banks may need to pay Rs 250 per hour for delays beyond one hour.
The new rules may start from October 1, 2026.
