RBI may allow banks to lock phones bought on EMI

Business Oct 03, 2025

The Reserve Bank of India (RBI) is thinking about letting banks remotely lock smartphones bought on EMI if people stop making payments.
With more people buying phones this way, unpaid loans are piling up, so the RBI wants to curb bad debts—especially for smaller purchases.

Critics raise concerns about borrower rights and financial inclusion

To make this work, the RBI would tweak its Fair Practices Code and require lenders to get customer consent before locking any device.
A 2024 study showed over a third of electronics in India are bought on EMI, so this rule could affect a lot of people.
Some worry it might hit lower-income users hardest, since many rely on EMIs for essential tech.
Concerns about borrower rights and financial inclusion have been raised by critics as these rules take shape.