1 Missed EMI? Lender May Lock Your Phone Soon

RBI is consulting on new rules that could let banks and NBFCs disable your phone or tablet if you default on a loan used to buy it. The rules also tighten how recovery agents can behave when chasing borrowers for dues.

Here's what happened: RBI has issued revised draft rules governing how banks and recovery agents must behave when collecting overdue loan payments from borrowers.. A major new proposal would allow lenders to remotely lock or disable features on a phone or tablet that was purchased using a financed loan, if the borrower defaults.. This is still a draft open for public comment — it is NOT yet a final rule — but RBI is actively refining it based on stakeholder feedback received since February 2026..

What you should do: Check if your mobile phone, laptop, or tablet was bought via an EMI loan — these devices could be subject to remote locking under the proposed rules.. Never miss an EMI on a device loan; set up auto-debit from your savings account today to avoid accidental defaults that could trigger a device lock.. Submit your feedback to RBI's public consultation before the deadline — visit rbi.org.in and search 'Recovery Agent Directions 2026' to share your views..

Pro tip: Even under the proposed rules, lenders must follow a defined default notice period before disabling a device — document all your EMI payment receipts as proof of timely payment.