Attention Credit Cardholders! RBI's 3-month moratorium on EMIs is not applicable on credit card bill payments
In a massive relief for common man and business in wake of coronavirus crisis, the Reserve Bank of India on Friday reduced its repo rate by a huge 75 basis points (bps). RBI also said that all commercial banks, co-operative banks, all-India financial institutions, and NBFCs are being permitted to allow a moratorium of three months on payment of installments in respect of all term loans outstanding as on March 1, 2020. But, is credit cards outstanding covered under RBI's 3-month moratorium? Let's find out:
It is to be noted, RBI allowed a moratorium of three months on payment of instalments of all 'term loans' outstanding."The moratorium on term loans, the deferring of interest payments on working capital and the easing of working capital financing will not qualify as a default," the RBI said.
However, outstanding credit card bills won't be covered under it as they are classified as 'revolving credit', not term loan.
Which banks can offer RBI's 3-month deferment to their customers?
All commercial banks (including regional rural banks, small finance banks and local area banks), co-operative banks, all-India Financial Institutions, and NBFCs (including housing finance companies and micro-finance institutions) included.
What kinds of loans are exempted under RBI moratorium?
As per the RBI policy statement, all terms loans including personal loans, home loans, education loans, auto or other loans with a fixed tenure will be covered under the three-month moratorium. All your smaller loans such as monthly installments on mobile phones, fridge, and TV, etc have also been exempted.
Also Read: Repo rate slashed, RBI also announces 3-month loan moratorium | HIGHLIGHTS
