{
  "id": 256877,
  "title": "RBI Bars Lenders From Locking Borrowers’ Devices Except For Gadget Loans",
  "url": "https://urgent.news/2026/08/07/rbi-bars-lenders-from-locking-borrowers-devices-except-for-gadget",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-07T06:23:39.000Z",
  "source": {
    "name": "Inc42",
    "slug": "inc42",
    "url": "https://inc42.com/buzz/rbi-bars-lenders-from-locking-borrowers-devices-except-for-gadget-loans/"
  },
  "original_language": "en",
  "account": "The Reserve Bank of India (RBI) has prohibited banks and regulated entities from disabling or restricting borrowers' mobile phones, tablets, or laptops as a loan recovery measure, except in cases where the loan was specifically taken to finance the device. These revised guidelines will take effect from January 1, 2027, and are part of the central bank's updated framework for loan recovery and engagement of recovery agents. Lenders may employ technology-based methods to limit or disable a borrower's device for repaying debts tied to a lender-financed device, provided strict safeguards are observed. The RBI has instructed regulated entities to follow a graduated approach instead of immediately disabling devices, ensuring that essential features like incoming calls, SMS, emergency SOS services, and government notifications remain accessible. The central bank has also required that Original Equipment Manufacturer (OEM) certification be obtained for device-locking solutions provided by third-party service providers.",
  "summary": "The Reserve Bank of India (RBI) has issued new directives prohibiting lenders from disabling or restricting borrowers' mobile devices, tablets, or laptops as a loan recovery measure, with exceptions for loans taken to finance the device itself. Effective from January 1, 2027, these revised guidelines are part of the RBI's updated framework for loan recovery and recovery agent conduct. Under the new rules, lenders cannot use technology-based mechanisms to restrict or disable borrowers' devices for recovering dues on personal, home, vehicle, or other non-device-related loans. However, for loans used to finance the device, lenders may employ such measures under strict safeguards. The RBI has mandated that lenders and third-party service providers obtain certification from the device's original equipment manufacturer (OEM) or operating system platform before deploying such technology. Lenders must also ensure that essential functionalities like incoming calls, SMS, and emergency services remain accessible to borrowers.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}