RBI considers letting banks remotely lock phones if EMIs unpaid
The Reserve Bank of India (RBI) is thinking about letting banks and NBFCs remotely lock mobile phones bought on credit if borrowers stop paying their EMIs.
The goal is to help lenders recover loans more easily and reduce bad debts, but they'll need your consent first—and can't access your personal data on the device.
Potential benefits and concerns
This could make it easier for lenders, especially those giving small loans under ₹1 lakh, to get their money back—pretty relevant since over a third of gadgets in India are bought on credit.
With 1.16 billion mobile connections in the country, the impact could be huge.
Still, some worry this might be misused and block people from essential services if they fall behind on payments, so finding a fair balance is key as personal loan demand keeps growing.