RBI Rules: Banks or finance companies cannot immediately lock your smartphone if you miss an EMI payment. Let’s look at the RBI's new loan recovery rules and when they will come into effect.

RBI Loan Recovery Rules: Nowadays, most people purchase smartphones on EMI, but sometimes, due to various reasons, there is a delay in paying the installment on time. This often raises the question: will the bank or finance company immediately lock the phone if an EMI is missed? The Reserve Bank of India (RBI) has established new rules regarding loan recovery, under which banks or finance companies cannot immediately lock your phone due to outstanding EMI. These new rules will come into force on January 1st.

What are the new RBI rules?

The RBI's new loan recovery rules will take effect on January 1st of next year. Consequently, a bank or finance company cannot immediately lock your phone simply because an EMI was missed; providing a notice to the customer before taking any action is mandatory. Additionally, the system used to lock the phone must be certified by the mobile manufacturer (OEM) or the operating system platform. According to the RBI, abruptly disabling the phone completely without prior notice will be considered a violation of the rules.

These features will remain active even if the phone is locked

Incoming calls cannot be blocked.
SMS services will continue.
The emergency SOS feature will remain active at all times.
No restrictions can be imposed that would completely halt a person's essential activities.

When can action be initiated?

Certain restrictions may be imposed if an EMI remains overdue for more than 30 days and a notice has been issued.
Action such as full restriction or locking the phone can only be initiated if the loan installment remains overdue for 60 days or more.
However, the customer will be given time to pay the outstanding amount before such action is taken.

Which loans do these rules apply to?

Smartphones purchased on EMI
Personal loans
Home loans
Car loans

LPG e-KYC: Completing LPG e-KYC is mandatory by August 15, 2026. Failure to undergo Aadhaar verification could lead to issues with booking gas cylinders at domestic rates and receiving LPG subsidies.

Ensure you complete the e-KYC process in time.

LPG e-KYC Process: If you use LPG cylinders at home, state-run oil companies have made it mandatory for all domestic LPG consumers to verify their identity online using their Aadhaar cards. The deadline for this is August 15, 2026. If you do not complete the e-KYC on time, you may face difficulties booking gas cylinders at domestic rates. Essentially, you have only 7 to 8 days left to complete this task.

Oil companies are continuously sending SMS reminders to customers' registered mobile numbers regarding e-KYC completion. Failure to complete Aadhaar verification by the deadline could disrupt access to LPG cylinders at domestic rates. The objective of this initiative is to eliminate fake and duplicate gas connections, ensuring that government subsidies reach only the intended beneficiaries.

What happens if e-KYC is not completed?

According to the companies, customers who do not complete their e-KYC may have to purchase cylinders at commercial rates for a certain period. Additionally, the LPG subsidy for beneficiaries of the Pradhan Mantri Ujjwala Yojana could also be affected. Therefore, all consumers are advised to complete their Aadhaar verification in a timely manner.

A large number of people across various parts of the country have yet to complete their e-KYC. In Pune district, for instance, approximately 4.80 lakh out of 6 lakh domestic gas consumers remain unverified. Gas agencies are raising awareness through phone calls, SMS, and door-to-door outreach to prevent last-minute rushes and ensure everyone completes the process on time. To complete e-KYC, consumers can use the Indian Oil One App, the official app or website of their LPG provider, or seek assistance from a nearby gas agency or the cylinder delivery staff; an Aadhaar card, a registered mobile number, and other necessary details will be required for this process.

Why did the government launch this initiative?

The government states that this move will strengthen the LPG distribution system. It will also help curb fraudulent connections and ensure that subsidy benefits reach only eligible beneficiaries. Therefore, if you have not yet completed your LPG e-KYC, make sure to do so before August 15 to avoid any future issues regarding gas cylinder bookings or subsidy payments.