The Confederation of All India Traders (CAIT) and the All India Mobile Retailers Association (AIMRA) have wholeheartedly welcomed the Reserve Bank of India’s proposed draft guidelines on loan recovery practices and device-locking norms in the smart device financing ecosystem, terming them a historic and progressive reform that will bring transparency, accountability, and ethical discipline into the rapidly growing digital credit market.

Praveen Khandelwal MP and Secretary General of the CAIT said that the RBI’s initiative reflects a balanced and visionary regulatory approach that protects consumer dignity while also safeguarding the legitimate interests of financial institutions and retail businesses.

Shri Kailash Lakhyani, Chairman of AIMRA stated that the proposed framework introduces much-needed clarity by defining strict timelines and due processes, including the 90-day overdue threshold and mandatory advance notices before any restrictive action is initiated. They particularly appreciated the RBI’s decision to ensure that essential mobile phone functionalities, including emergency communication and basic connectivity, remain operational even in cases of device locking. This provision strongly upholds the consumer’s fundamental right to communication and safety.

Shri Khandelwal further said that these guidelines will help curb arbitrary and coercive recovery practices that have often caused distress among consumers and created confusion within the retail ecosystem. The move will also build greater trust among customers opting for digital financing schemes, thereby strengthening India’s formal retail and fintech economy.

Khandelwal said, “The RBI has demonstrated remarkable sensitivity and foresight by creating a framework that balances business growth with consumer dignity. These guidelines will promote responsible lending, ethical recovery practices, and greater confidence in the digital financing ecosystem. We appreciate Prime Minister Narendra Modi for continuously promoting ease of doing business, consumer protection, and transparent governance, which are clearly reflected in such progressive reforms.”

Kailash Lakhyani said, “For mobile retailers across the country, this is a highly reassuring and positive step. The structured norms will help create a healthier and more organized market environment where retailers, consumers, and financial institutions can operate with greater trust and accountability. AIMRA had consistently highlighted the need for standardized recovery and device-locking practices, and we are glad that the RBI has taken a pragmatic and consumer-friendly approach.”

The trade bodies also noted that their proactive engagement with policymakers and their direct representation before the RBI Governor regarding the urgent need for structured and transparent guidelines played an important role in bringing attention to the issue and promoting fair trade practices across India.

CAIT and AIMRA expressed confidence that once implemented, these guidelines will strengthen India’s digital economy, encourage responsible fintech innovation, and further reinforce India’s image as a globally trusted and consumer-conscious marketplace under the leadership vision of Prime Minister Narendra Modi.