Recommendation on RBI Draft Amendment Directions — Technology-Based Device Restriction Mechanisms

AMCHAM submitted suggestions to the Reserve Bank of India on the Draft Amendment Directions governing technology-based restriction mechanisms in device financing. The recommendations cover a shorter, graduated notice framework suited to small-ticket, short-tenure loans, distinction between essential connectivity and non-essential applications, linking cure of default to confirmed receipt of funds with an extended restoration window and clearer grievance and compensation norms, and borrower-led uninstallation of the mechanism upon full repayment.