Didn’t Pay Loan? Your Phone Will Be Locked!

In this day and age of digital transactions, it has become extremely common and easy to acquire electronic products using EMI system. Virtually anyone can get a brand new phone or electronic item through EMI and loan process.

However, there is a downside to this payment procedure as several people tend to default on these loans while incurring huge losses on the issuer. 

In this context, something very interesting is happening with regard to the Reserve Bank of India. Apparently, the RBI is considering the idea of remotely locking mobile phones that are bought through defaulted loans. 

What this essentially means is that anyone who buys a phone and does not pay the equivalent EMI will be prone to their phones getting locked by the vendor. This would grant banks the power to remotely lock mobile phones bought through EMI if the payments are due.

The RBI has communicated that this new mechanism is in development and it is pending approval from legal and tech experts. Once this comes into circulation, defaulted loans and the phones that are acquired through the same could be undergoing a massive rehash.