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WordsEquated monthly instalment

EMI

Short for equated monthly instalment: a card purchase turned into fixed monthly payments, at the shop or after the bill. RBI’s rules make the bank show the principal, interest and any upfront discount before converting it and again on the statement, and keep an EMI with interest from being called no-cost.

A no-cost EMI is one where the shop or the bank gives an upfront discount to cover the interest. The fees are each bank’s own: HDFC Bank’s MITC, for example, charges a processing fee of up to ₹299 on an EMI taken at a shop, and 3 per cent of the principal left to close one early, with GST on top.

Where this comes from

  1. RBI, Credit Cards and Debit Cards: Issuance and Conduct Directions, 2025Paragraph 12(3), as updated 1 October 2026
  2. HDFC Bank, Key Fact Statement cum MITC for Credit CardsVersion 4.12, 30 September 2026: Part I, A) iii. j. and L) GST

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