Say ‘yes’ to SBI by SMS, if you want to defer EMI

By: |
Published: May 28, 2020 5:15 AM

“The moratorium is anyways available to everyone in the sense that.. if they do not pay, account will not become non-performing asset (NPA)," Setty further said.

Earlier, the bank had followed manual process for providing moratorium to its customers till June, 2020. Earlier, the bank had followed manual process for providing moratorium to its customers till June, 2020.

Retail customers of State Bank of India wanting to defer their monthly loan repayments by another three months will have to respond to the bank with a ‘yes’ via a text message (SMS) to avail of the moratorium till August 2020. The bank on Friday said that it had reached out to all of its eligible retail customers to obtain their consent for loan deferment via SMS on mobile phone. Explaining the process, C.S. Setty, managing director (MD), State Bank of India (SBI) said, “If a customer says ‘yes’ to SMS, we will not push through your standing instructions of debiting the savings account account for EMIs till August 2020, “Earlier, the bank had followed manual process for providing moratorium to its customers till June, 2020. “The moratorium is anyways available to everyone in the sense that.. if they do not pay, account will not become non-performing asset (NPA),” Setty further said.

The bank has said it has reached out to around 85 lakh eligible borrowers through SMS. Last week, RBI announced an extension of EMI moratorium on all term loans by three months. Before that, the central bank had announced a three-month moratorium on all term loans outstanding as on March 1, 2020.

SBI chairman Rajnish Kumar on Friday said that around 20% of customers have availed deferment on loan installments till now. The very next day, second-largest public-sector lender, Bank of Baroda (BoB) said that they had provided moratorium to 65% of its customers. Sanjiv Chadha, managing director (MD) and chief executive officer (CEO) of Bank of Baroda also said moratorium figures of other public sector banks should not be very different. BoB had provided an ‘opt out’ policy for its customers, other than non-banking financial companies (NBFCs). ‘Opt out’ policy means moratorium was provided by default to borrowers, and those who wish to repay needed to contact the bank.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Bank deposits growth slides for first time in three months; customers stay away from taking loans  
2Axis Bank gets board’s nod to raise up to Rs 15,000 crore
3RBI considering steps to ease pain of both lenders and borrowers; may do this for stressed firms