 "Reserve Bank of India, RBI")
With a surge in demand for small-ticket loans from customers who are new to credit, the Reserve Bank of India is considering allowing lenders to use “device-locking technology” (DLT), by which they can lock the borrowers’ smartphone in the case of a default.
For such customers, who are mostly from the low-income category, traditional collateral or credit checks are not available. At the same time, credit demand from such categories is rising, particularly smartphone financing.
Allowing banks and non-banking financial companies to lock mobile phones can enable them to manage risk and get repayment without costly repossession. Remote locking acts
