Loan EMI reminders despite RBI moratorium worry borrowers

PTI

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Many borrowers, credit cardholders received SMS from their lenders reminding them to maintain sufficient balance on the due date

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Mumbai: With many getting payment reminders, confusion prevails among borrowers, term-plan investors and credit cardholders over the implementation of the three-month moratorium on all loan repayments amid disruptions caused by the coronavirus outbreak.

As part of measures to alleviate hardships faced by people, the Reserve Bank, on March 27, announced a slew of steps, including a three-month moratorium on loan repayments.

Many borrowers, credit cardholders and mutual fund investors have received SMSes from their lenders reminding them that they need to maintain sufficient balance on the due date. Among others, such messages have been received by people who have taken personal, auto and home loans.

An SBI Cards customer from the city received an SMS on Sunday asking him to pay the minimum balance for payment on the annual charge even though the person is yet to activate his credit card.

On Saturday, a Navi Mumbai homemaker who has a monthly investment plan from ICICI Lombard received a message asking her to maintain the EMI amount in the bank account. On Sunday, her husband got a call from his insurance broker regarding payment towards a plan taken from HDFC Ergo.

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According to a banker, customers would have to inform their banks that they want to avail the benefit of the moratorium.

"Wherever there is a standing instruction, the customer has to inform the bank that he or she wants EMIs to be deferred. Otherwise, instalments will be deducted," a senior public sector banker said.

RBI has taken a slew of measures, including a 75-basis points cut in the repo rate, in the wake of the situation arising out of the outbreak of coronavirus, which has infected more than 1,250 people and has claimed over 30 lives so far in the country.

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