New Delhi: India’s central bank plans to allow lenders to remotely lock mobile phones bought on credit if the borrowers default on those loans, two sources said, in a move aimed at curbing bad assets that is likely to raise consumer rights concerns.

Over one-third of consumer electronics, including phones, are purchased on small-ticket loans in India, a 2024 study by Home Credit Finance showed. The country of over 1.4 billion people has more than 1.16 billion mobile connections, according to the telecom regulator, reflecting deep market penetration.

Last year, the Reserve Bank of India asked lenders to halt locking phones of defaulting borrowers,........

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