The Indian Banks Association on Tuesday said that they were working on the modalities to provide their customers, the option of delayed repayment of loans and EMI’s, in accordance with the RBI directive.
Last week, @RBI announced a three-month moratorium on all term loans outstanding as on March 1, 2020, as well as on working capital facilities.
The Indian Banks Association has answered a list of Frequently Asked Questions about the technicalities of the moratorium. (1/4) pic.twitter.com/ASvjT1dBpj— Ministry of Finance 🇮🇳 #StayHome #StaySafe (@FinMinIndia) April 1, 2020
Banks held a video-conference on Tuesday and stated that current systems will have to be modified to provide this benefit to customers.
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Last week, the RBI had imposed a moratorium on repayment of all loans including agricultural, housing and industrial finance for a period of 90 days of those standard accounts as of March 1.
“The repayment schedule for such loans as also the residual tenor, will be shifted across the board by three months after the moratorium period. Interest shall continue to accrue on the outstanding portion of the term loans during the moratorium period”, the RBI said.
This will also apply to term loan repayment periods.
Banks have said that they will intimate their customers through mails, phones and messages and apprise them of this policy decision.
HDFC made an official announcement for the details on the EMI moratorium.
Important #announcement.
Click here to visit our website for details on #EMI moratorium. https://t.co/Mr0n3ZEGId@RBI @DFS_India @DFSFightsCorona @FinMinIndia @HDFC_Bank pic.twitter.com/eusoEY6IPo— HDFC Bank News (@HDFCBankNews) April 1, 2020
PNB said, “In view of COVID-19, it has been decided to defer payment of all installments on term loan and recovery of interest on cash credit facilities falling due between March 01, 2020 and May 31, 2020.”
“EMIs of housing loans, vehicle loans, MSME loans and payment of all other term loans falling due after March 1 and up to May 31 have been deferred by 3 months,” Syndicate Bank said.
“The next instalment is now payable in June 2020. Your repayment schedule will be extended accordingly,” said UCO bank.
While the Central Bank of India said in a tweet that the moratorium will be given to all. “Three months deferment is automatic & customers need not approach bank for the same,” the bank said.
“However, customers may approach the bank to change the standing instructions or any other mandate given by them for payment of their loan instalment. Interest will accrue in loan accounts but no penal interest. March 20 instalment already paid will be automatically appropriated towards next EMI due, that is for June 20,” the tweet said.
Information for Customers on relief measures- @DFS_India @FinMinIndia pic.twitter.com/zcKOoL6bCm
— Central Bank of India (@centralbank_in) March 31, 2020
Those customers whose accounts have already been debited by their EMI payments will be refunded, as soon as the systems are in place.
The national lockdown that has been imposed for a period of 21 days has affected the functioning of the banks, the economic and social life of all citizens due to which the RBI announced the relief measures.