RBI's Jaago Grahak Jaago moment

Want to buy an iPhone or the latest television? Forget the zero-interest scheme. With the Reserve Bank of India (RBI) saying banksshould no longer lure customers through zero-interest schemes and ought to declare the real interest rate on consumer durables, there is likely to be more transparency in the way you are charged.

A zero per cent interest scheme, typically, works in this way. Whether you are buying through a non-banking financial institution or credit card, the repayment period is six or nine or 12 equal instalments. On the day of purchasing, you have to pay three or four instalments as advance and the rest over time. The catch: There is a one-time administrative and processing fee.

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