India, Oct. 1 -- The Reserve Bank of India (RBI) is evaluating a platform that would allow lenders to remotely lock mobile phones bought via credit in the event of borrower defaults.

"We are assessing the potential benefits and risks linked to this platform. The RBI is particularly focussed on balancing consumer data privacy and upholding borrower rights, while also addressing the needs of creditors seeking to recover loans," RBI governor Sanjay Malhotra said while briefing the media on the outcome of the central bank's Monetary Policy Committee (MPC) meeting.

Notably, over one-third of consumer electronics products in India, including phones, are bought on small-ticket loans.

The RBI had reportedly previously instructed lenders to pau...