Credit Card and other EMI payments can also be deferred by banks: RBI clarifies
In a notification issued later in the day, the RBI has clarified that credit card dues shall also be deferred.
By : Kathir Webdesk
As a major relief to the common man especially the Indian middle class, the Reserve Bank of India has allowed for deferment of all loan repayments until 30th June, 2020. Borrowers need not pay any equated monthly installments (EMIs) for any loans until 30 June. This is set to bring respite to all borrowers, including those who have taken home loans, education loans, auto loans, agricultural term loans, crop loans, etc. This deferment is also be applicable on credit card dues. However, it is the banks discretion to allow for these deferments. The RBI's notification isn't a directive to the banks.
"Instalments will include the following payments falling due from March 1, 2020 to May 31, 2020: (i) principal and/or interest components; (ii) bullet repayments; (iii) Equated Monthly instalments; (iv) credit card dues," read the latest RBI notification.
The reprieve will be available for loans taken from any financial institution for all loans outstanding as of 1 March 2020. The RBI has clarified that the rescheduling of payments will not be considered as a default and that there will be no risk of the account being classified as a non-performing asset. This means that the non-payment of dues will not impact the credit history of the borrower.