Borrower Protections Under RBI’s Device Lock Framework Effective 2027

The final RBI framework is softer than the earlier draft, which had allowed a complete device lock after 90 days of default. New rules safeguard borrowers by prohibiting the blocking of incoming calls, SMS, or emergency SOS features. Lenders must also ensure that any restriction does not interfere with a borrower’s livelihood – essential work apps must remain functional. Privacy is a core element: lenders and any third‑party service providers must obtain certification from the device manufacturer or OS platform and are barred from accessing personal data such as contacts, messages, photos, or location history.