New Delhi: The Reserve Bank of India (RBI) is considering a proposal that will empower banks and non-banking financial institutions to remotely lock mobile phones that were purchased on EMIs if the borrower defaults.

“Such a proposal is currently under discussion, and we are getting views both for and against such a move,” RBI governor Sanjay Malhotra said during a post monetary-policy press conference on Wednesday. ADVERTISEMENT

“We are taking those views on record,” he said, adding: “Our effort is to ensure that a consumer’s rights are maintained, in terms of data privacy, etc…The consumer’s interest is paramount, while we consider the issues faced by banks.”

To allow banks and NBFCs to take such action, the RBI will have to revise its Fair Practices Code.

Under the proposed rules,

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