What’s inside:
This article discusses a potential plan by RBI to allow banks to lock mobile phones if users fail to pay their loan EMIs.
The Reserve Bank of India (RBI) is considering a new rule that would allow banks and credit card companies to remotely lock mobile phones of users who default on their loan EMIs. This plan is aimed at improving the recovery of loans, especially for amounts less than ₹1 Lakh.
If this rule is approved, lenders would have the authority to block smartphones when a user misses payments. This could affect many customers, particularly those using high-end devices like iPhones.
Under this potential system, banks would need to get clear permission from customers when they take a loan or set up EMIs. Importantly, they will not be able to access any personal data on the locked smartphones.
Here are some key points to note: lenders must get explicit consent from users, they cannot view personal information, and this plan is still being discussed and has not been finalized yet.
As of now, the RBI is still reviewing this proposal. The final decision will determine how and when this rule might be implemented, if at all.
Summary:
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- RBI may allow banks to lock phones for unpaid EMIs.
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- This could particularly impact iPhone users.
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- Lenders need consent to lock devices and can’t access personal data.
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- The plan is still under consideration and not yet finalized.
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- Customers should stay informed about the developments on this issue.
