The Indian Wire » Business » RBI extends moratorium on Loans and Credit Cards : All you need to know
Business

RBI extends moratorium on Loans and Credit Cards : All you need to know

Shaktikanta Das

The governor of RBI, Shaktikanta Das announced on Friday at a press conference where he informed the media and said, “Three-month moratorium we allowed on term loans & working capitals we allowed certain relaxations. In view of the extension of the lockdown and continuing disruption on account of COVID-19 prevalent situation, these measures are being further extended by another 3 months from June 1 to Aug 31.

“It has been decided to relax rules governing withdrawal from Consolidated Sinking Fund (CSF) while at the same time, ensuring depletion of the fund balance is done prudently. It will enable states to meet about 45% of redemption of their market borrowings which are due in 2020-21,” he added.

These steps are basically taken into consideration keeping in mind the interests of the general public wherein they will get ample amount of time to clear their dues and also figure out a way of paying it if they haven’t already. It is a good news indeed, for those who have taken term loans like home, auto and personal loans, but the moratorium extension applies for credit card dues as well. These measures come as a relief in the current COVID-19 pandemic situation.

Also, in addition to this, RBI has also come up with a fresh breath of air to the credit card users wherein the moratorium on loan EMIs and credit card dues is available for the months of March, April, May, June, July and August.

With this extension, the RBI has permitted banks and credit card issuers to grant three more months of moratorium for payment card dues from June 1, 2020 to August 31, 2020.

However, by opting for the moratorium one should keep in mind that the interest will continue to accrue on the unpaid dues during the moratorium period, that is, for 6 months.

Reach out to The Indian Wire!

Want to work with us? Looking to share some feedback or suggestion? Have a business opportunity to discuss?

You can reach out to us at [email protected] and we will get back in minutes.

Like us on Facebook!

Advertisement