Thiruvananthapuram: Following the three-month moratorium on loan repayments announced by the Reserve Bank of India in view of the COVID-19 pandemic, banks are introducing various methods for customers to avail the moratorium.
Canara Bank has already introduced an SMS facility for customers. In case they do not wish to debit equated monthly instalments (EMI) from their accounts till May, borrowers can send the message ‘NO’ to the phone number 8422004008, said Canara Bank.
When Reserve Bank announced the moratorium on loans from March to May, it had not specified whether customers had to submit an application to benefit from the grace period. The state-level bankers’ committee did not made mention the procedure either.
However, most banks have decided to collect an application from borrowers to avoid legal disputes that might crop up later. Banks have also chosen the SMS route to avoid crowding at their branches. Interactive phone facility is also being considered.
Meanwhile, the country’s biggest bank SBI is yet to take a decision on the issue, an official said.
On the other hand, Federal Bank said its procedure for applying for the moratorium would be announced as soon as possible. “In case EMI for March has been collected from borrowers eligible for moratorium, it would be returned,” said Federal Bank senior vice-president and head of loans section K A Babu.
According ESAF Small Finance Bank, no fines would be imposed on borrowers who make use of the moratorium. Customers who do not wish to utilize the moratorium can contact the nearest branch of the bank, it said.
Only borrowers who had not defaulted on loan repayments till February 29 are eligible for the moratorium. Some banks have informed borrowers that bouncing charges would be waived.
