October 21, 2020

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Income Tax Software

RBI Clarification: Not Just EMI, Credit Card Dues Will Also Be Covered Under Three Months Moratorium

The
Reserve Bank of India has clarified that all lending institutions are permitted
to grant a moratorium of three months on payments of all instalments on term
loans, including credit cards.

The RBI on
Friday (Mar 27) announced that all banks will be permitted to allow a
three-month moratorium on payment of instalments of all term loans outstanding
on March 1, 2020. The loan payments must pertain to the period between March 1, 2020, and May 30, 2020.
During the
moratorium period, a borrower is not required to make any repayment. Normally,
the repayment begins after the loan is disbursed and the payments have to be
made each month. However, the RBI has made a one-time exception in view of the
financial distress arising out of the global pandemic coronavirus and the
economic havoc wreaked by the lockdown imposed to control its spread.
The decision will be to cover all
regional, rural banks, co-operative banks, NBFCs including Housing Finance
Companies, however the final decision on passing on the benefit to customers
will rest with the banks.
The RBI said the moratorium will
not result in asset classification downgrade and will have no adverse impact on
the credit history of the borrowers.

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