Reserve Bank of India's policy tightening norms has led to banking majors ICICI Bank and HDFC Ltd opting out of teaser loan scheme.
HDFC Ltd's teaser loan scheme came to an end on Tuesday and the bank has declared of not extending it anymore, said an official of the bank. These loans have also been removed by ICICI Bank with immediate effect, said the bank.
SBI has however declared of continuing the scheme till December end.
Public sector lender, Corporation Bank has already given up the scheme last month.
RBI had raised provisioning on these loans to 2% in the second quarter review of monetary policy.