SBI Extends Moratorium for Next Three Months

On Wednesday, State Bank of India (SBI) said that it has decided to automatically extend the moratorium for all the eligible borrowers by three more months without waiting for their request.

From the time the Reserve Bank of India (RBI) allowed banks to extend the moratorium, borrowers are trying to find out whether the extension will be made automatic or they need to reapply to avail the benefitted.

The bank on Wednesday said in a statement that the information had been sent out to all of its eligible loan customers to know their consent to stop their standing instructions for the equated monthly instalments (EMIs) due in the month of June, July and August 2020.

"For this, the bank has simplified the process of stopping the EMIs by initiating a short message service (SMS) communication to nearly 8.5 million eligible borrowers asking about their consent to stop EMIs. The borrowers have to reply with a yes to a designated virtual mobile number (VMN) mentioned in the SMS sent by the bank within five days of receiving the SMS if they wish to defer the EMIs," the statement said.

Rajnish Kumar, chairman, SBI informed on 22 May, Friday that around 20% of its borrowers have availed of the moratorium. He said that RBI's extension of the ongoing moratorium by three more months would take care of cash flow disruptions for borrowers even in the absence of a one-time debt recast relief.

Kumar spoke to media soon after RBI governor Shaktikanta Das announced a 40-basis point (bps) repo rate cut and numerous regulatory measures in the wake of the COVID-19 pandemic.