RBI wipes out 0% EMI on consumer goods no 0% scheme from retailer Banking
Reserve Bank of India (RBI) abolishes equated monthly instalements (EMI) on consumer goods just before 2013 festival season
In wake of further tightening monetary policy at home turf, Reserve Bank of India (RBI) gave instructions to banks to offer uniform interest rates and processing fees on equated monthly instlaments (EMI) from retail prodcuts. RBI discourages banks from offering such products with 0% interest rates in a circular on 25th September 2013.
RBI clears that 0% schemes are serve the purpose of alluring and expoiting customers. Now, Financial institutions cannot offer 0% schemes on retail products, consumer goods specially during the period of festive seasons when their demands are very high in comparison to other parts of the year.
RBI also waves any charges, processing fees from purchasing made from debit cards encouraging cashless transactions in coming days.