RBI's 2027 Rules: Can Lenders Still Lock Your Phone?

From January 2027, RBI's new directions will set strict rules on how banks and their recovery agents can chase borrowers — including limits on device-locking, harassment, and recovery behaviour. Here's what changes for you.

Here's what happened: RBI will enforce a unified recovery conduct framework for all commercial banks effective 1 January 2027, covering agents, notices, and device-locking practices.. The directions introduce explicit borrower protections: restricted calling hours, mandatory agent identification, and defined notice requirements before any device action.. Banks must ensure their third-party recovery agencies comply with the same standards — lenders remain responsible for agent misconduct under the new rules..

What you should do: Save your bank's official grievance redressal email and the RBI Banking Ombudsman portal (bankingombudsman.rbi.org.in) so you can escalate quickly if harassed.. Check your loan agreement for any device-access or device-locking clauses — especially on buy-now-pay-later or fintech EMI loans — and understand when they apply.. Document every recovery call you receive: note the date, time, caller name, and what was said — this evidence is critical if you file a complaint after January 2027..

If a recovery agent visits your home without a written authorisation letter from the bank, you can legally refuse to engage — request the letter first, always.

If you're dealing with recovery agents, read our recovery agent harassment guide covering your RBI rights.