If you have taken a loan from any bank or NBFC and due to some reason have not been able to pay your EMI on time, then there is no need to panic. For some time now, such messages have been going viral on social media and messaging apps, in which it is being claimed that if a person does not pay the loan EMI, the bank can get his mobile number blocked.
It is important to know that there is no rule of the Reserve Bank of India (RBI) which gives the bank or any licensed loan giving institution the right to block the customer’s mobile number for non-payment of EMI.
Can bank block mobile number?
The bank may remind you of your outstanding loan. He can call, SMS, email or send a notice. If the loan remains outstanding for a long time, the bank can also inform the credit bureau, which can damage your credit score. If needed, the bank can also start the recovery process as per law. But the bank cannot ask any telecom company to switch off your mobile number. Mobile services operate under telecom rules. Banks and NBFCs have no legal right to close them.
What has RBI said?
RBI has given clear instructions that banks and their recovery agencies should make recovery from customers only in a respectable and legal manner. If a recovery agent intimidates, threatens or tries to create mental pressure by giving false information to the customer, then it is considered against the Fair Practices Code of RBI.
What can happen if EMI is not paid?
This does not mean that there will be no impact of not paying EMI. If you do not pay the installments on time, late fees and penalties may be imposed. Your CIBIL score may get damaged. There may be difficulty in getting loan in future. The bank can start recovery under legal process. If needed, the bank can take recourse to court or other legal options. But blocking mobile numbers is not included in these legal actions.
What to do if you get such a message?
If you get a message or call saying that your mobile number will be switched off if you do not pay EMI, then do not panic. First of all ask for written information from the bank. Verify the claim by contacting the bank’s customer care or grievance redressal. Also keep a screenshot or record of such messages or calls, so that a complaint can be made if needed.
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