Are banks allowed to disconnect your phone number for unpaid loans?
Financial institutions and NBFCs lack the authority to shut down or deactivate a customer's mobile connection due to missed loan payments, as there is no RBI policy that allows this. Lenders are restricted to using lawful recovery methods, such as sending payment reminders, notifying credit bureaus, or initiating formal legal action. Since mobile connectivity falls under the jurisdiction of telecom laws, banks do not have the power to interfere with these services.
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