Planning to buy a phone or / a television during the upcoming festive season Do not bet on paying off the bill in interest free instalments.
These schemes are being withdrawn as the Reserve Bank of India (RBI) has frowned on the practice of banks tempting consumers to make big-ticket purchases by offering to break up credit card payments into EMIs.
RBI feels consumers have been fooled by 0% or discounted interest rate schemes into believing that bank funding comes for free, and wants them stopped.
Consumer durable manufacturers offer the 0% facility mostly on high-value products such as smartphones, LED TVs and premium home appliances.
Such schemes only serve the purpose of (luring) and exploiting vulnerable customers, the central bank RBI said in a confidential note to banks on September 17, 2013.
These were found to be impinging on customer protection, accounting integrity and thereby the fair market practices which banks should epitomise.
Src: ET
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