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Banks Can't Block, Disable Mobile Phones If Loans Not Paid, RBI Rules

Banks, however, are permitted to take certain steps to restrict mobile phone features if the loan dues are not cleared.

Banks Can't Block, Disable Mobile Phones If Loans Not Paid, RBI Rules
Banks are permitted to take steps to restrict mobile features when borrowers take a loan to buy phones.
Photo Source: NDTV Profit

The Reserve Bank of India on Wednesday clarified that lenders cannot block or disable mobile phones in case of loans taken for buying the device are not paid back. 

The banking sector regulator, in its draft amendment directions, said banks are permitted to take certain steps to restrict mobile phone features if the loan dues are not cleared. However, completely blocking or disabling the phone is prohibited, it clarified.

Notably, these restrictions apply only for loans taken specifically to buy mobile phones, and are not related to borrowings for other purposes.

(This is a developing story)

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