Overview

• RBI Governor Sanjay Malhotra confirmed the proposal is under examination and that the central bank is soliciting views for and against it.
• Any permission would require changes to the Fair Practices Code, with remote locking enabled only after explicit borrower consent and without lender access to personal data.
• Operational details are unresolved, including trigger rules after missed EMIs, warning and grace periods, and clear dispute‑resolution mechanisms.
• Lenders argue a remote lock would treat financed smartphones as enforceable collateral to deter rising defaults in small‑ticket consumer credit, while consumer groups warn of harm to essential digital access and privacy risks.
• The RBI previously asked lenders to stop using phone‑locking ‘kill apps’ and is now considering a tightly regulated alternative, with no final decision or implementation timeline announced.