Topic
digital lending
Finance RBI bars lenders from locking phones over missed EMIs under new recovery rules
The Reserve Bank of India has released final norms on loan recovery that prohibit lenders from disabling borrowers' mobile phones, tablets or laptops as a recovery tool, except for devices financed through loans. The new framework, effective January 1, 2027, sets a graduated restriction timeline, compensation for delayed unlocking, and certification requirements for device-locking software.
Finance RBI Eases Device-Lock Norms for EMI-Financed Gadgets, Relaxes Recovery Agent Disclosure
The Reserve Bank of India has relaxed proposed rules on locking EMI-financed mobile phones, tablets, and laptops, allowing graded restrictions after 30 days past due instead of the earlier 90-day threshold. The central bank also dropped demands for public disclosure of individual recovery agents and deferred implementation to Jan 1, 2027, while keeping borrower safeguards such as a Rs 250-per-hour compensation for delayed device unlocks.
Finance Auto Lenders Push for Embedded Finance Innovation to Transform India's Auto Loan Market
Auto financiers in India are calling for a shift from traditional EMI-based loans to embedded finance and digital credit at the point of sale. Nearly 80% of new cars are financed, but leasing and subscription models remain minuscule. Industry leaders at the Fada Finance and Insurance Summit highlighted the need for seamless, integrated products and faster rate transmission.