The Bank has reached out to all its eligible loan customers to get consent to stop their Standing Instructions (SIs) mandate for the EMIs falling due in June, July and August 2020.

SBI to proactively extend moratorium by 3 months for eligible loan customers
Money Banking Thursday, May 28, 2020 - 13:49

The country’s largest lender, State Bank of India, has decided to extend the moratorium by another 3 months on loan accounts of all eligible customers without waiting for their request. This is in line with the RBI’s recent announcement on extension of the moratorium on term loan EMIs by another three months. 

Besides, the Bank has also proactively reached out to all of its eligible loan customers to obtain their consent to stop their Standing Instructions (SIs) / NACH mandate for the EMIs falling due in June, July and August 2020. For this, the Bank has simplified the process of stopping the EMIs by sending an SMS communication to nearly 85 lakh eligible borrowers asking about their consent to stop EMIs. 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.

The extension of moratorium and deferment of EMIs would give some respite to the borrowers amid the COVID-19 pandemic.

Recently, the employees of State Bank of India (SBI) decided to contribute an additional amount of Rs 7.95 crore to the Prime Minister's Citizen Assistance and Relief in Emergency Situations (PM-CARES) Fund.

Accordingly, the total donation made by SBI employees by letting go of one day's salaries and a day's leave encashment now amounts to Rs 107.95 crore.

"In March 2020, around 2,56,000 employees of SBI had donated Rs100 crore to the PM-CARES Fund which is created to fight the coronavirus pandemic," SBI said in a statement.

"SBI has also committed 0.25 per cent of annual profit for FY 2019-2 0 as a part of its CSR activities to fight COVID-19.”

RBI Governor Shaktikanta Das had said on May 22, “In view of extension of lockdown and continuing disruption on account of COVID-19, the moratorium has been extended till August 31. The total period of applicability will now be six months.”

In March, the RBI had announced a three-month moratorium on payment of all term loans due between March 1, 2020, and May 31, 2020.

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