Published 15:49 IST, March 31st 2020
Banks implement EMI moratorium announced by RBI, allow installments deferment till May 31
Several banks have implemented the regulatory package announced by the Reserve Bank of India allowing deferment of EMI instalments for 3 months till May 31
Days after the Reserve Bank of India announced 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 the regulatory package announced by the Central Bank. The banks on Tuesday issued a notification 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 the notification issued by banks to implement the package:
'Moratorium will have no impact on credit history'
The RBI clarified that this will have no impact on the credit history or the credit rating of the beneficiary. "The rescheduling of payments will not qualify as a default for the purposes of supervisory reporting and reporting to credit information companies (CICs) by the lending institutions. CICs shall ensure that the actions taken by lending institutions pursuant to the above announcements do not adversely impact the credit history of the beneficiaries."
It is important to note that the RBI has only permitted the banks to defer the payments, and has not instructed the banks to do so. Thus, banks can avoid deferring loan payments.
Updated 15:49 IST, March 31st 2020