After the lockdown-hit loan borrowers were relieved when last Friday’s RBI announced three months moratorium on EMIs, now with a day to go for the new month and new EMI cycle to begin, borrowers still don’t know what will happen to their monthly installments.
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Firstly, all customers don’t know if there is an automatic moratorium on their loan installments or they need to inform banks about it. Also how to proceed if customers still want to pay EMIs and if there any benefit for those who are willing to pay up.
Customers are also worried as a majority of loan installments become due in the first week of the month and in case banks do not pause standing instructions for debiting bank accounts and the transaction fails, most banks charge a penalty ranging between Rs 200 to Rs 400.
The Reserve Bank of India on Friday had extended the deadline for meeting last tranche of capital conservation buffer (CCB) by another six months due to disruption caused because of the COVID-19 outbreak.
“Considering the potential stress on account of COVID-19, it has been decided to further defer the implementation of the last tranche of 0.625 per cent of the CCB from March 31 to September 30, 2020,” RBI Governor Shaktikanta Das had said on Friday.
The RBI governor had said that CCB is designed to ensure that banks build up capital buffers during normal times, that are outside periods of stress which can be drawn down, as losses are incurred during a stressed period.
However, confusion reigns as banking sources say there is an absence of instructions from headquarter on the deferment of installment.
Some banks say they are working on ways to give options to their loan customers and customers will be informed about the options through SMS or emails in the coming days.
Borrowers will also be given an option to pay loan installments if they want to and these options could be given through a link on website but bankers also admit an exercise of this scale may take few more days considering the limitations on work as a result of the countrywide lockdown imposed to counter the coronavirus spread.
Also, banks may defer EMI deduction from accounts till a solution is achieved on solving the problem. as RBI has given the option “up to the bank”, the implementation of the relief package rests with an individual ba
All banks want to be on the same page regarding the instructions which is causing delay in finding a unanimous solution as a single customer may have accounts in different ban
Source: Thanks WIONews.com