Banks to follow EMI moratorium rule

The implementation of the package had apparently been delayed due to confusion about the modalities, forcing the finance ministry and the central bank to intervene on Tuesday.

The Department of Financial Services under the Ministry of Finance directed banks to pass on the benefits to the customers at the earliest and ensure the message is communicated to all branches, said a finance ministry official, who did not wish to be identified.

The Central bank will answer some frequently asked questions (FAQs) to address the confusion, an RBI spokesperson said. Most state-run banks, including Canara Bank, Punjab National Bank (PNB), Bank of India (BoI), Bank of Baroda and the State Bank of India, took to social media Tuesday afternoon to announce that borrowers were eligible for the loan moratorium as they detailed the process of availing the scheme.

For customers, however, it remains unclear whether they need to approach banks for seeking a temporary halt in EMI repayment or whether it will be done automatically.There is also confusion on the due EMI payments of March. Most banks are yet to provide this kind of clarity even though four days have passed since the RBI’s announcement.