Srinagar 10 April(KNB): With the Covid-19 forcing people to live an unprecedented life across the globe, the Reserve Bank of India (RBI) issued an equated monthly installment (EMI) moratorium for all the public sector banks to follow. However Jammu and Kashmir Bank—while throwing rules to the wind continued with its business—deducting EMIs from the customers and borrowers.
Kashmir News Bureau (KNB) learnt that the customers of Aloosa Branch of north Kashmir’s district Bandipora accused Bank Branch of deducting their installments despite the RBI moratorium. The customers immediately resisted and registered their complaint with the Branch head, however the Bank staff went ahead with their normal business.
Pertinently, RBI Governor on March 27 said, “All commercial banks (including regional rural banks, small finance banks and local area banks), co-operative banks, all-India Financial Institutions, and NBFCs (including housing finance companies and micro-finance institutions) (lending institutions) are being permitted to allow a moratorium of three months on payment of instalments in respect of all term loans outstanding as on March 1, 2020.”
“Accordingly, the repayment schedule and all subsequent due dates, as also the tenor for such loans, maybe shifted across the board by three months.”
This directive to all banks in the country could help millions of people who have exiting term loans and EMIs as they will not have to pay any instalments on them for a period of three months, he added then.
Moreover, Department of Financial Services under the Ministry of Finance earlier has directed banks to pass on the benefits to the customers at the earliest and to ensure the message is communicated to all branches.
Talking to KNB, one of the borrowers of Aloosa branch of J&K said, “My salary was released yesterday and I was expecting that I will receive a full package this month but unfortunately despite the guidelines issued by RBI my loan installment was deducted.”
He said, “I know we are liable to pay on due date and I am never late in paying my installments. But this time it is RBI directive to keep EMIs on hold. The bank officials passed the buck and said higher authorities have directed them to deduct installment of April.”
Another, KCC lender said, “Amid lockdown the entire business sector of valley has collapsed while we are suffering since Floods in 2014, being a small businessman, I had kept some savings in my account and I was sure that the J&K bank won’t deduct the installment as per the guidelines issued by RBI but yesterday on my installment date, my entire savings were deducted.”
Accusing J&K Bank officials of mental trauma, “I am left with almost nothing in my account and we don’t know how long lockdown will continue amid Covid-19, I fear that my family will starve as we are left with nothing.”
When Kashmir News Bureau contacted Chairman, J&K Bank R K Chibber, he said, “We will look into the matter,” he said. “If this has happened, strict action will be taken against the bank officials,” he assured.
What is RBI EMI Moratorium for COVID-19?
Covid-19 has forced us to live a life that most of us have never experienced before. At this point of time we would advise you to follow the guidelines advocated by Government of India and stay safe.
This challenge can also become a source of courage, resilience and hope. Tata Capital resolves to stand beside you to fight this crisis and help you take care of your family, your business and your own self and tide over this temporary situation. We advise you to stay safe and healthy and continue to engage with us from your home through our digital services.
The Reserve Bank of India announced a regulatory package arising due to COVID-19 under which Tata Capital borrowers are eligible for a moratorium / deferment of their Loan EMI for 3 months for the instalments due between 1st March 2020 and 31st May 2020. In line with the RBI guidelines and to show our solidarity in standing with you to tide over your cash-flow mismatch, we are offering you the EMI moratorium for both our Retail and Non-Retail customers. The RBI says that the interest on your loan outstanding would keep on getting levied during this period and get added to your future installments. (KNB)