Failed To Repay EMIs On Time? RBI May Allow Lenders To Lock Your Smartphone To Tackle Rising Defaults

The Reserve Bank of India (RBI) is reportedly considering a move that could allow lenders to remotely lock mobile phones purchased on credit if borrowers fail to repay their equated monthly instalments (EMIs). According to experts, the step is designed to control rising defaults in small-ticket loans, especially those linked to consumer electronics. While the proposed measure may support loan recovery, it also raises serious concerns about consumer rights, digital dependence, and the ethical use of technology in financial enforcement.