Banks implement EMI moratorium announced by RBI, allow installments deferment till May 31

Days after Reserve Bank of India anunced that banks have been permitted to allow a 3-month moratorium on payments of instalments of all term loans outstanding on March 1, 2020, several banks have implemented regulatory pack anunced by Central Bank. banks on Tuesday issued a tification to its customers stating, "borrowers are eligible for moratorium/ deferment of instalments/EMIs for Term loans falling due from 01.03.2020 to 31.05.2020." Here is tification issued by banks to implement pack: 

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'Moratorium will have impact on credit history'

RBI clarified that this will have impact on credit history or credit rating of beneficiary. " rescheduling of payments will t qualify as a default for purposes of supervisory reporting and reporting to credit information companies (CICs) by lending institutions. CICs shall ensure that actions taken by lending institutions pursuant to above anuncements do t versely impact credit history of beneficiaries."

It is important to te that RBI has only permitted banks to defer payments, and has t instructed banks to do so. Thus, banks can avoid deferring loan payments.

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