Missed a loan EMI? RBI’s new recovery rules shield borrowers from harassment and device locking
The Reserve Bank of India (RBI) introduced new loan recovery rules to protect borrowers from harassment and unauthorized device locking, effective January 1, 2027. The guidelines limit intrusive practices by banks and recovery agents, ensuring that borrowers are not subjected to device restrictions unless the loan specifically financed that device. Borrowers will receive due notice before any restrictions are imposed, and their personal data cannot be accessed for recovery purposes.