The mobile phone taken on the loan can be approved soon. RBI is considering providing this facility to lenders. According to reports, the Reserve Bank of India can update its Fair Practice Codes. In view of the increasing cases of loan default, banks can provide this facility to lenders. Since then, questions are also being raised about people’s data privacy and rights. According to a 2024 study in the Home Credit Finance, one-third consumer electronics products in India are taken on small loans. It also includes smartphones.
This country with a population of 1.4 billion has 1.16 billion mobile connections. It is not that the lenders did not do this earlier. Earlier, many lenders used apps to lock the borrowed phone. Last year, RBI banned this practice of lenders. On non -payment of loan, lenders used to lock the phone of consumers.
For this, they used an app, which used to be installed in the phone. RBI can approve this process after discussion with lenders. For this, the central bank can issue a guideline, which will be released in the next few months. Banks want small loans to get their right to recovery. Also, the bank’s focus is on keeping people’s data safe. Therefore, the bank is creating a mechanism that does not reach the lender users’ data. However, RBI has not officially given any information in this whole matter.
How will the phone running on the loan be locked?
For this, banks and NBFCs can use an app. This app will be installed when purchasing the device in the consumer’s phone. Google device lock controller, Samsung Finance+ App and other apps can be used. According to reports, lenders will have to get the permission of the consumer before installing the app. Lenders will not reach any user’s personal data. The phone can be locked only when the consumer does not pay the loan amount.
