RBI now against 0% EMIs for consumer goods, banks withdraw finance schemes; festive sales likely to be hit

Planning to buy a phone or a television during the upcoming festive season? Don't bet on paying off the bill in interest-free instalments. These schemes are being withdrawn as the Reserve Bank has frowned on the practice of banks tempting consumers to make big-ticket purchases by offering to break up credit card payments into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 zero per cent or discounted interest rateschemes into believing that bank fundingcomes for free, and wants them stopped. Consumer durable manufacturers offer the zero per cent facility mostly on high-value products such as smartphones, LED TVs and premium home appliances.

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