The State Level Bankers’ Committee (SLBC) has sent a reminder to the Reserve Bank of India (RBI) regarding the State’s mid-March plea for a one-year moratorium on loan repayment in view of the economic scenario triggered by COVID-19.
The SLBC, in a letter to the Regional Director, RBI, on Saturday reiterated the State’s request that the moratorium should be for a period of one year from February 1, 2020, SLBC convener N. Ajit Krishnan said.
State’s demand
On March 17, Chief Minister Pinarayi Vijayan had placed the State’s demand for a moratorium on loan repayment before the banks citing the financial crisis triggered by COVID-19.
The next day, the bankers’ panel decided to recommend a one-year moratorium to the RBI.
The condition was that the ‘repayment holiday’ would benefit standard accounts that were prompt in their repayment as on January 31, 2020.
On March 27, however, the RBI declared a three-month loan moratorium from March 1 to May 31, 2020 at the national level, given the intensity of the COVID-19 situation and its impact on national economy.
SBI clarification
The State Bank of India (SBI) has clarified that the three-month moratorium on repayment of term loans under the COVID-19 relief package announced by the Reserve Bank of India would be available to all borrowers whose accounts are standard as on March 1, 2020.
Borrowers need not submit any separate application for availing themselves of the moratorium for instalments due for payment between March 1 and May 31.
Repayment
The repayment period of such loans would be extended by three months at the end of the term, but the interest on the outstanding amount will continue to accrue during the moratorium period.
Borrowers are directed to visit the website www.sbi.co.in/stopemi to defer the standing instruction/NACH mandate for three months.
They are also eligible for refund of the instalments for March and April that have already been repaid.
