New Delhi, May 24 -- The Reserve Bank of India has proposed a new rule allowing lenders to remotely lock or disable mobile devices such as smartphones and tablets if a borrower fails to repay the loan used to buy the device. According to the draft framework on loan recoveries, banks and NBFCs can only deploy this mechanism after a repayment delay of at least 90 days.

The central bank had first issued the draft norms in February. Substantial feedback from stakeholders resulted in changes in many key draft provisions, warranting fresh amendments, the RBI said.

The central bank has invited public comments and feedback on this revised framework by 31 May.

Mint takes a closer look at the proposals, what powers they could give lenders, the s...