As per circular dated March 27, 2020, RBI permitted banks to grant a moratorium (Deferment of EMI/interest) up to May 31, 2020 on payment of dues between March 1, 2020 and May 31, 2020.

Vide circular dated May 23, 2020, RBI has extended the availability of moratorium by another 3 months. Accordingly RBL Bank customers are eligible to avail moratorium (Deferment of EMI/Interest) for dues between June 1, 2020 and August 31, 2020.

Availing of moratorium is completely optional. If the customer wishes to continue to make repayments as per their repayment schedule, it can continue to do so and save on additional interest payable if Moratorium is opted. With easing of lockdowns at various levels and business activity restarting, it is advisable tat moratorium be availed only where cash flows are severely affected, in order to avoid interest burden and extended tenor.
 

All eligible customers covered under the moratorium can request for availing moratorium, one month at a time, i.e. for June by submitting your moratorium request at least 5 days before your EMI due date. If you wish to avail a moratorium for the months of July and August, 2020, you will need to re-apply for the same.

For opting in for the Moratorium, it is required to send an SMS MOR to 5607011 from their registered mobile number. Requests from un-registered numbers shall not be processed. For customers who do not opt-in specifically, any non-clearance of EMI/Interest shall be treated as an automatic opt in to avail the moratorium facility for the month.

However, for cases where customers’ EMI payments are cleared through ECS/NACH/SI, clearance of EMI will be taken as their consent to opt out of the moratorium scheme and their EMI shall be presented as per regular schedule. Should such a customer choose to avail moratorium of EMI/Interest, they can follow the above process to request for the benefit.

The decision to offer a moratorium to a customer will be at the sole discretion of the Bank.

For customers whose EMI payments are cleared through ECS/NACH/SI, clearance of EMI will be treated as consent from the customer to opt out of the moratorium facility. If the customer wishes to communicate an opt-out, they can send an SMS MOROUT to 5607011 from their registered mobile number.

Customers are required to send a separate SMS for each loan account, from their registered mobile number for opting-in (or) opting-out of the moratorium.

For customers who have availed the moratorium benefit, EMI for Term loan accounts will be deferred by number of months for which the moratorium is availed. The interest would continue to accrue on the outstanding loan amount during the moratorium period and will be added to the principal outstanding after the moratorium. Consequently, the tenor of the loan will be suitably extended.

For customers availing Moratorium/Deferment of interests under working capital limit or Dropdown Overdrafts, the monthly interest will not be billed to their loan account for the months where moratorium/deferment of interest is availed. However, the interest would continue to accrue on the utilized amount during the moratorium period and will be charged to the account on the last day of the subsequent month. Please note the moratorium/deferment of interest can be availed till August 31, 2020 only. The entire interest for the term of moratorium availed shall be converted basis customer request into Funded Interest Term Loan repayable in installment by March 31, 2021. Alternatively, this interest shall be billed at the end of next month of moratorium month.

If you need to extend the expiry/drop, a request is required to be placed as mentioned in point no.3 above. Accordingly, where the overdraft limit is expiring before August 31, 2020, the expiry/drop will extend by 1 month. In case of Dropdown Overdraft Account, where the limit is dropping during the Moratorium Period, the drop date shall be deferred by 1 month. In case the customer wishes to extend this further (up to August 31, 2020), customer is required to re-apply in the subsequent month.

Yes. You can follow the process mentioned above to opt out of the moratorium. Accordingly, on receipt of your request, we shall present your EMIs as per the original schedule.

No. EMI amount will remain the same. However the tenor will be suitably increased.

Yes. Interest for the moratorium period will continue to accrue and will be added to the principal outstanding after the moratorium period.

While the assessment should be done independently by the customer, it is worth noting that there is an associated cost with the deferment of EMI’s in terms of accrued interest and its capitalization. You should only opt for this facility if you are experiencing a cash flow crunch due to the COVID-19 situation.

No. However any payment overdue prior to March 1, 2020 will continue to be reported to the credit rating agencies.

Only the EMIs which are falling due between March 1, 2020 and August 31, 2020 will be eligible for moratorium benefits. Any instalment or overdue amount before March 1, 2020 is required to be paid to avail the moratorium benefit, avoid additional charges & reporting to the credit bureau.

To view previous version of FAQs pertaining to Moratorium announced in March 2020, click here.