EMI deferment does not require OTP sharing, says SBI

India's largest lender, State Bank of India (SBI), through its twitter handle has alerted its customers about the new style of cybercrime and informed them the deferment of the equated monthly instalments (EMIs) does not need them to share their one-time passwords (OTPs) with the bank. It said in such type of frauds, the customers get calls asking them to share their OTP to postpone their loan EMIs.

The bank in a tweet said, "Cyber fraudsters keep finding new ways to scam people. The only way to beat the #cybercriminals is to #BeAlert & be aware. Please note that EMI Deferment does not require OTP sharing. Do not share your OTP. For details on EMI Deferment scheme, visit: https://bank.sbi/stopemi." It adds, "A new style of cybercrime has been started by fraudsters. In such frauds, customers get calls asking them to share their OTP in order to postpone their loan EMIs."

The tweet adds, "Once the OTP is shared the amount immediately siphoned away by fraudsters. Please do not share your OTP."

SBI's EMI moratorium

Customers of the State Bank of India who have availed loans from the bank and want to defer the payment of EMIs are required to apply through an email to the specified email ID if the EMI is debited via National Automated Clearing Hospital (NACH). If the EMI is debited via standing instructions, then borrowers are required to submit an application through an email to the specified email ID.

SBI has informed customers if they don't want to avail the moratorium, no action is required from their end. The bank has further clarified to its customers that the interest will continue to accrue over the moratorium period and it will increase the cost.

Background

Amid the issues being faced by the borrowers due to the Coronavirus, COVID-19, the Reserve Bank of India (RBI) has offered EMI moratorium for individuals and business borrowers. The scheme offers the facility to defer the monthly payments by 3 months.

Banks are reaching out to customers to know if they want to avail of the loan repayment moratorium announced by the RBI. However, we would like to inform the readers that this is only a grace period, not a waiver of the loan.