National Chronicle

RBI EMI moratorium: Mirage for credit card holders, do you possess it

New Delhi: In view of the outbreak of Coronavirus, Reserve Bank of India Governor Shaktikanta Das has given great relief to the customers taking loans today. The RBI today asked all banks, non-banking financial institutions (NBFCs) and housing finance companies, along with other financial institutions, to postpone the term loan installment for three months.

RBI has said in its statement, ‘All commercial, regional, rural, NBFC, and small finance banks are allowed to give 3 months moratorium on installment payment. This will be effective for all loans whose EMI is due on 31 March. Since credit cards are defined as revolving credits and not as term loans, they are not covered by the moratorium.

What will be your benefit?

SC Kalia, retired executive director of Union Bank of India explained the meaning of this moratorium, saying that suppose someone has taken a home loan, car loan or personal loan. He is not in a position to pay EMI for three months. According to the arrangement that RBI has just made, if customers do not pay EMI for three months, there will be no penalty on the customers nor will it affect their CIBIL score. Yes, because of this their loan repayment period will be increased by three months.


This step of RBI will give a big relief to millions of EMIs. Especially those who have their own business and whose earnings have become uncertain due to the lockdown caused by the coronavirus.

This means that if you have taken a loan from a bank and give its EMI every month and for some reason, your EMI cannot be given for three months in the current circumstances, then your CIBIL score will not be bad. You can resume your EMI from three months onwards.

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