RBI may allow lenders to lock phones on EMI default

Governor Sanjay Malhotra said the central bank is examining a proposal to allow lenders to remotely lock mobile phones bought on credit in case of default in EMI payments; rules out any charge on UPI transactions

Mumbai: Reserve Bank Governor Sanjay Malhotra on Wednesday said there is no proposal to levy any charge on UPI transactions. The Governor also said the central bank is examining a proposal to allow lenders to remotely lock mobile phones bought on credit in case of default in EMI payments.

While responding to a question whether there is a proposal to levy charges on UPI transactions, which have gone up significantly, Malhotra said there was no proposal. “Is there going to be charges on UPI? Well, there is no proposal before us,” he said at a post-monetary policy press conference.

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On digital locking of phones bought on credit, the Governor said the matter was under consideration.

RBI Deputy Governor M Rajeshwar Rao added that both pros and cons regarding the digital locking of phones are being examined.

“The issue of digital locking is under examination as the Governor has pointed out. There are pros and cons on both sides in terms of balancing customer rights and requirements, data privacy, and creditors’ requirements. So, we are examining the issue, we will…take a view at a later point in time,” Rao said.

During the press conference, Malhotra and other deputy governors replied to a host of queries, including on rate cut possibilities in forthcoming polices, and rupee depreciation.

On the rate cut, the Governor said inflation has dropped considerably, providing space for monetary easing. On the depreciating value of the rupee against the US dollar, he said the central bank does not target any level or band, but only tries to check undue volatility.

Malhotra also exuded confidence that the very high GDP growth trajectory will continue with price stability, and private capital expenditure will pick up. He said the RBI raised the GDP growth projection to 6.8 per cent for the current fiscal from its earlier estimate of 6.5 per cent because of good economic activities in the first half of 2025-26.