SBI extends moratorium on loans by three months

Earlier, Reserve Bank of India (RBI) had on May 22 announced the extension of moratorium by another three months.

State Bank of India (SBI) on Wednesday said it has decided to automatically extend the moratorium offered to all of its eligible customers by another three months without waiting for their request.

Earlier, Reserve Bank of India (RBI) had on May 22 announced the extension of moratorium by another three months.

In a statement on Wednesday, SBI said it has decided to extend moratorium automatically by another 3 months in loan accounts of all eligible customers without waiting for their request.

Bank has proactively reached out to all eligible loan customers to obtain their consent to stop their Standing Instructions (SIs) and NACH mandate for the EMIs falling due in June, July and August 2020, India's biggest lender said.

Bank has also simplified the process of stopping the EMIs by initiating a SMS communication to nearly 85 lakh eligible borrowers asking about their consent to stop EMIs, SBI said.

The borrowers have to reply with a YES to a designated virtual mobile number (VMN) mentioned in the SMS sent by the Bank within 5 days of receiving the SMS, if they wish to defer the EMIs, it added.

Last week, SBI chairman Rajnish Kumar had said that about 20% of its borrowers have availed of the moratorium.

He had said that RBI’s extension of the ongoing moratorium by another three months will take care of cashflow disruptions for borrowers even in the absence of a one-time debt recast relief.