If you have purchased a mobile phone on loan and have not paid the EMI on time, then in the future the bank may stop some features of your smartphone. The Reserve Bank of India has proposed major changes in the rules related to loan recovery, which has increased the concern of millions of customers. However, RBI has clarified that this rule will be applicable only in those cases where the mobile, tablet or any device itself has been purchased with the loan of the bank. The bank will not be able to block a person’s phone for non-payment of personal loan, car loan or home loan.
When can phone facilities be discontinued?
According to the RBI proposal, if the customer has taken a device loan and has not paid the EMI for 90 days, then the bank can take action. But before that it will be necessary to give notice to the customer. After this the bank can limit or stop some features of the phone.
Internet and emergency features will remain operational
While giving relief to the customers, RBI has said that the bank will not be able to switch off the phones completely. Essential services like internet access, incoming calls, SOS feature and government emergency alerts will remain operational. That means the customer will not be completely cut off from the world.
Phone will unlock within an hour as soon as EMI is paid
If the customer pays the outstanding EMI, the bank will have to restart the disabled features of the phone within an hour. If this is not done, the bank may have to pay compensation to the customer at the rate of Rs 250 per hour.
Strictness on recovery agents also
RBI has also proposed strict rules regarding the conduct of recovery agents. Now agents will not be able to abuse customers, nor will they be able to share their information or videos on social media. Making excessive calls or sending messages will also be considered against the rules.
It will be necessary to keep call recording
Under the new rules, banks will have to keep records of calls related to recovery. The bank will have to keep the complete data of which calls were made, when, how many times and what conversations took place. RBI has sought suggestions from people and institutions on these proposed rules till May 31. It is believed that these new rules can be implemented from October 1, 2026.
