rbi moratorium directive

FAQs: RBI Moratorium on Credit Card

1. What is Moratorium?
Reserve Bank of India has provided the banks with the permission to allow moratorium of three months on repayment of instalments / credit card dues for term loans outstanding between March 1, 2020 and May 31, 2020.

2. Is this a waiver of outstanding due or a deferment of outstanding due?
This is not a waiver, but a deferment of dues. Interest shall continue to accrue on the outstanding during the moratorium period as per current rate.

3. Will this also be applicable to EMI on my debit card?
Yes. For EMI on Debit Card, if you opt for the facility, no EMI recovery will be done from your Savings account during the moratorium period.

4. Does this mean that I will have to pay total o/s due for three cycles at one go after the moratorium?
At the end of the moratorium period, the statement generated will reflect the total outstanding at that point in time, including interests, fees and other charges. You will need to pay at least the minimum amount due. You may choose to pay the remaining amount later.

5. Will non-payment result in impact on my credit score?
No. Non-payment of your outstanding during the moratorium period will not result in any impact on credit score.

6. Can I still opt to make payment towards my o/s dues as per the due date?
Yes! This is a voluntary option and you may choose to pay the o/s due as per your billing cycle payment due date. Please continue to pay if you can. This moratorium option should be utilised only by those who are facing problems in paying their EMI during this period. By availing moratorium option, you are only deferring the payments by few months. Hence, in case you are not facing any cash flow problems, it is suggested you continue the pay the EMI regularly.

7. Will the bill statement get generated and will the due date be monthly or after the moratorium ends?
Your statement will be generated as per the billing cycle. However, if you opt for the moratorium, you will not need to make any payments towards the same during the moratorium period. Post moratorium, the total outstanding, including interest, fees and other charges will be billed to you in June 2020. Please pay at least the minimum amount due indicated in your June 2020 statement to avoid late payment charges.

8. How does the entire process work?
To opt in for the moratorium facility, please click here. In the subsequent page, provide your registered mobile number. You will be able to view all of your Cards and Loan relationships with the Bank. Select the relationships you want to be covered under the
moratorium facility. You will then need to authenticate using a One Time Password (OTP). Thereafter, your request will be processed, and you will be enrolled in the moratorium facility.

9. My March 2020 statement has already been generated. Do I need to pay the same if I opt for a moratorium?
Since moratorium is applicable from 1st March – 31st May’20, if you opt for moratorium, you will not have to pay for March’20 statement. We request you to inform the bank, if you wish
to avail this service.

10. What if the customer does not pay during the moratorium period, how will the interest charges be levied to customer?
Interest charges will continue to accrue as per normal rates, and will be billed to you at the end of the moratorium period.