RBI allows gradual device restrictions for EMI defaults, eases recovery agent disclosure norms

The Reserve Bank of India has introduced new rules allowing lenders to restrict devices bought on Easy Monthly Installment (EMI) financing for borrowers who default on their loans. This means that if a borrower fails to make payments, their device's functionality will be gradually limited, but essential features like incoming calls and emergency services will remain available. This move aims to help lenders recover debts more efficiently and reduce the risk of default. The change is likely to impact consumers who rely on EMI financing for devices and may lead…

Read the source report: Economic Times