RBI allows gradual device restrictions for EMI defaults, eases recovery agent disclosure norms
Economic Times 1 hr ago·7 Aug 2026, 9:00 am
The Reserve Bank of India has introduced new guidelines allowing lenders to restrict access to devices purchased through EMI financing. This measure will be implemented gradually and will only apply to devices where the loan is significantly overdue. Notably, incoming calls and emergency functions will remain accessible to borrowers, ensuring they can still reach out for help or contact family in urgent situations. Additionally, the central bank has relaxed the disclosure norms for recovery agents, aiming to streamline the collection process while maintaining borrower privacy.
These changes are significant for investors as they signal a more pragmatic approach to managing non-performing assets. By easing disclosure norms, lenders may find it easier to recover dues, which could positively impact their financial health. However, the gradual rollout and the retention of essential device functions suggest the RBI is prioritizing consumer protection. Investors should monitor how these rules are applied, as they could influence the operational efficiency and profitability of lending institutions in the coming years.
Excerpt from Economic Times
The Reserve Bank of India will permit lenders to restrict devices bought on EMI financing. These restrictions will be gradual and only after a loan is significantly overdue. Incoming calls and emergency functions will remain accessible to borrowers. Disclosure requirements for recovery agents have also been eased by…Read the original at Economic Times
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