Phone Locking Ban: Blow to consumers, businesses

Srinagar, Sep 19: The recent ban on phone locking technology has hit consumers and businesses hard in Kashmir, with Non-Banking Financial Companies (NBFCs) tightening smartphone EMI approvals.

Phone locking earlier acted as a safety net for lenders by allowing them to disable devices in case of EMI defaults. This security encouraged NBFCs to extend loans more freely, boosting retail sales and helping low-income families buy smartphones. But since the ban, loan approvals have shrunk, and even customers with clean repayment records are facing rejections.

“This regulation is choking the retail smartphone market,” said Bilal Ahmad, a mobile dealer in Srinagar. “Earlier, 60–70% of our sales came through EMIs. Now, people walk away because loans aren’t getting cleared.”

The fallout is also hurting livelihoods. Delivery agents and gig workers who depend on smartphones for work are unable to upgrade devices. “Without a good phone, we can’t even log in to delivery apps. Our income is directly at risk,” said Imtiyaz, a food delivery agent from Baramulla. Students too are bearing the brunt. “I need a smartphone for online classes, but my father’s EMI application was rejected,” said Arifa, a college student from Pulwama. “It feels like the system is punishing even genuine customers.”

Retailers report that EMI sales have dipped sharply, especially in Tier-2 and Tier-3 towns.