RBI Proposes To Let Lenders Restrict Smartphone Functions In Case Of Default

by · Inc42

SUMMARY

  • RBI has issued amendment directions to revise 'Conduct of Regulated Entities in Recovery of Loans and Engagement of Recovery Agents' as part of a wider revamp of loan recovery norms
  • The proposed changes include provisions allowing financial institutions like banks, NBFCs, among others, to deploy tech-based mechanisms which restrict or disable some of the functionalities of a financed mobile device
  • The proposal seeks to formally regulate a practice already being used by some fintech lenders and smartphone financing companies