Credit card payments can be delayed by 3 months, RBI says
Published : Saturday, 28 March, 2020 at 4:40 PM Count : 240
The Reserve Bank of India has made it clear that financial institutions can allow a three-month deferment on payment of credit card payments.
In order to provide relief to the middle class in the wake of the Coronavirus lockdown, the Reserve Bank of India t allowed banks and other financial institutions to postpone three months on repayment of installments from March 1, 2020 to May 31, 2020.
The national debt repayment schedule will shift three months after the suspension and interest on the part-time loan portion of the deferred term loan will continue to accrue, RBI has clarified.
"For all term loans (including agricultural term loans, retail and crop loans), all commercial banks (including regional rural banks, micro finance banks and local area banks), cooperative banks, all-state financial institutions and NBFCs (including housing finance companies)" The lending companies ") will be allowed a three-month deferment for all installments," the RBI said.
The installment will include principal and /or material of interest; Bullet pay; Equal monthly installment (EMI) and credit card payments, "the central bank said.
Financial institutions need to get the approval of the board for a three-month suspension of repayment.
Lending loan companies will not be eligible for default on loan repayment repayments for reporting to credit information companies (CICs). Debt repayment for borrow borrowers will not adversely affect their credit history.
For lending loan companies, suspension is considered a change to the terms of the loan agreement.