RBI bars banks from disabling mobile devices of defaulting borrowers

The Reserve Bank of India is like the big referee that makes rules for all the banks in India.

It wants to make sure banks treat people fairly.

Now it has made a new rule about phones and laptops.

Sometimes, when people cannot pay back money they borrowed from a bank, the bank wants that money back.

Some banks were locking or disabling people's phones so they could not use them.

The referee says banks cannot do that to collect personal, car, or home loans.

A bank can only disable a device if it gave a loan to buy that exact phone or laptop.

And even then, the bank has to do it step by step and still let you make calls, read messages, and call for help in an emergency.

These new rules will start on January 1, 2027.

The RBI made these rules because borrowers complained that banks were harassing them.