New Delhi: In a move that has sparked both concern and debate, Reserve Bank of India is considering a proposal from banks and consumer finance companies in India for rolling out a new rule linking gadget functionality directly to EMI (Equated Monthly Instalment) payments.
Under the system, electronic devices such as smartphones, laptops and other consumer durables purchased on installment plans will automatically stop working if buyers fail to pay their EMIs on time.
Industry insiders say the mechanism works through pre-installed software locks integrated into gadgets at the time of sale. If a borrower defaults, the device can be remotely disabled until the overdue payment is cleared.
Banks argue that the step is necessary to curb rising defaults in consumer durable loans, which have seen sharp growth in recent years. According to industry estimates, nearly 35% of smartphones and laptops sold in urban India are financed through EMIs, and lenders have been struggling with delayed payments.
“This is not about harassment but about accountability. Borrowers must understand that EMIs are legally binding commitments,” said a senior executive at a leading private bank.
However, consumer rights groups are raising concerns, calling the move “anti-consumer.” They argue that technical disruptions could affect students, professionals and small businesses who rely heavily on their gadgets for work and education.
Experts also warn of data privacy risks, as the disabling mechanism may allow lenders or third-party vendors access to sensitive user information.
The Reserve Bank of India (RBI) is yet to issue an official clarification on whether it will regulate or endorse such practices. Meanwhile, major retailers and lending platforms have already begun integrating the lock-in feature for high-value electronic purchases during the festive season sales.
1 COMMENT
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Seeing all these stories about gadgets being locked if EMIs aren’t paid on time really made me pause — I’ve had my fair share of payment mishaps and know how frustrating it can be when something you rely on suddenly stops working. To take a breather from that stress, I stumbled upon vegashero , which offers special bonuses for players from New Zealand. I tried a few slot games to relax, and after some small losses, one big feature spin finally gave me a satisfying win. It didn’t solve my EMI worries, but it was a fun way to regain a bit of control and enjoy some distraction. Sometimes a little luck can turn a rough day around.