Crime & Law · India

RBI Prohibits Banks from Disabling Defaulters' Mobile Devices

The Reserve Bank of India (RBI) has issued a directive prohibiting banks from disabling mobile devices belonging to defaulting borrowers. This rule specifically applies to banks and does not affect Non-Banking Financial Companies (NBFCs), which are barred from offering revolving credit facilities. The RBI also clarified that defaulting borrowers' devices can be locked gradually, a measure that appears to be distinct from the mobile device disabling prohibition for banks.

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