New Delhi: The Reserve Bank of India (RBI) plans to implement a technology when a phone can be remotely locked in case there is an EMI default on a loan taken for purchasing that phone.
The idea has been mooted due to the increasing amount of bad loans, especially on loan amounts of less than Rs 1 lakh taken for purchasing smartphones.
The banks and NBFCs that are offering loan schemes to attract buyers are getting into trouble due to increasing defaulters.
RBI is currently assessing the pros and cons of this phone looking process. The privacy of the smartphone user needs to be maintained.
The RBI Monetary Policy Committee is checking ways that will.be beneficial for both the users and the banks.
RBI will do some modifications to the Fair Practices Code in the next few months. Once the new feature is embedded, the bank or the NBFC can use the Remote Locking Feature.
It will only apply to phones bought with loans. Once someone defaults on EMI, the phone will get automatically locked.
Only on payment of the EMI will the phone get unlocked.
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