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Coronavirus Pandemic: Indian Bank, UCO Bank And 5 Others Grant 3-Month Moratorium To Customers

The Reserve Bank Of India, Last Week, Had Permitted Banks, NBFCs (including Housing Finance Companies) And Other Financial Institutions To Allow A Three-month Moratorium On Payment Of Installments On Term Loans In View Of The Disruption Caused The Coronavirus Outbreak.

News Nation Bureau | Edited By : Victor Dasgupta | Updated on: 31 Mar 2020, 04:43:19 PM
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Indian Bank, UCO Bank and 5 Other Banks Grant 3-month Moratorium To Customers (Photo Credit: PTI)

New Delhi:

The Reserve Bank of India, last week, had permitted banks, NBFCs (including housing finance companies) and other financial institutions to allow a three-month moratorium on payment of installments on term loans in view of the disruption caused the coronavirus outbreak. Following the instructions, several leading banks of the country had provided a three-month moratorium to its customers on payment of EMI, interest on loans etc.

"All commercial banks (including regional rural banks, small finance banks and local area banks), co-operative banks, all-India Financial Institutions, and NBFCs (including housing finance companies and micro-finance institutions) ("lending institutions") are being permitted to allow a moratorium of three months on payment of instalments in respect of all term loans outstanding as on March 1, 2020. Accordingly, the repayment schedule and all subsequent due dates, as also the tenor for such loans, may be shifted across the board by three months," RBI said.

"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," RBI added.

The RBI also cut repo rate by 75 basis points and also cut cash reserve ratio by 100 basis points.

Besides that the central bank announced different measures to improve liquidity in the financial system. These measures will help lower interest rate in the overall banking system, making EMIs cheaper.

Leading banks like Indian Overseas Bank, Indian Bank, UCO Bank, Canara Bank, Punjab & Sind Bank, Syndicate Bank and the IDBI Bank took to Twitter and announced that they have provided a three-month moratorium on payment of EMIs, interest on loans. terms loans etc.

Here are tweets attached below:

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First Published : 31 Mar 2020, 04:11:37 PM

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Banks Coronavirus RBI EMIs