The Reserve Bank of India is considering a plan that would let banks and lenders remotely disable smartphones bought on credit if the buyer fails to pay their EMIs. This step is being discussed as defaults on small consumer loans rise, particularly in the electronics segment, where more than one-third of purchases are made through instalments. Expensive smartphones are often financed, but recovery becomes difficult when payments are missed. Credit card debt is also showing strain, with unpaid bills touching ₹6,742 crore in December 2024, marking a 28 percent increase from the previous year. Defaults are notably higher in Tier 3 cities and rural regions. The RBI has assured that protecting consumer rights and safeguarding personal data will remain a top priority before making any decision.