Can't pay phone loan? Lenders may lock your device
The Reserve Bank of India (RBI) is considering a new rule: if you buy a mobile phone on credit and miss your payments, lenders could remotely lock your device.
This move targets the growing problem of small loan defaults—especially for phones and gadgets bought on EMI.
Lenders need your consent before locking phone
With over a third of electronics in India bought on credit and 1.16 billion mobile connections, this could affect a lot of people.
Lenders would need your consent before locking your phone, and they can't access your personal data while it's locked.
While companies like Bajaj Finance might get better ways to recover dues, some worry this could cut people off from essential tech they rely on for work or study.
The RBI had actually paused a similar policy in 2024 over these concerns, but now they're trying to balance recovery with protecting users' rights.