In today’s digital world, buying electronic items on EMI has become very easy. Many people get brand new smartphones or gadgets through installment loans from banks or finance companies.
However, some buyers fail to pay their EMIs on time. This causes big losses for banks and lenders. To tackle this growing problem, the Reserve Bank of India (RBI) is considering a new solution.
The RBI is developing a system to allow banks to remotely lock phones bought on EMI if payments are not made. This means that buyers who miss their EMI payments could have their phones disabled until they clear the dues.
The system is currently under review by legal and technology experts. Once approved and launched, it is expected to change the way digital loans for phones are managed in India.
This move aims to make loan repayments more secure and reduce the financial risks faced by lenders. It may also encourage buyers to be more responsible with their installment payments.
Overall, this new mechanism could bring a significant shift in how EMI defaults are handled in the smartphone market.