Did you buy your phone on EMI? RBI is going to allow lenders to lock your phone if you fail to pay off loan
&imwidth=600&imheight=450&format=webp&quality=medium "Did you buy your phone on EMI? RBI is going to allow lenders to lock your phone if you fail to pay off loan")
Representative image Photograph: (PTI)
The decision of the matter is in the hands of the Indian central bank, which is analysing the pros and cons of the facility. Keeping consumers' data privacy in mind, RBI aims to focus on consumer interest without hampering the lenders' interests.
The central bank of India, the Reserve Bank of India, is working on a phone security platform that will enable lenders to remotely lock the phones of borrowers if they fail to repay the loan. This will be a move to curb bad assets, and the RBI is promptly working on it, the RBI Governor Sanjay Malhotra said during the MPC press briefing.
The decision of the matter is in the hands of the Indian central bank, which is analysing the pros and cons of the facility. Keeping consumers' data privacy in mind, RBI aims to focus on consumer interest without hampering the lenders' interests.
"The issue is under examination as governor has pointed out. There are pros and cons on both sides, in terms of balancing the customer rights and requirements of data privacy, and also the creditor's requirements," an MPC member told the Economic Times.
This came after a recent Reuters report, which said that the RBI asked lenders to halt locking phones of defaulting borrowers.
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In this context, the RBI is likely to update its Fair Practices Code in a few months and will introduce some guidelines on phone-locking mechanisms.
"The RBI wants to ensure that lenders have the power to recover small ticket loans, and at the same time ensure that customers' data is protected," one of the sources told Reuters.
