Tag: STATE BANK OF INDIA

ALERT – SBI Warns Customers to save their Bank Balance

SBI Warns Customers to Protect Their Finances

The State Bank of India (SBI) has issued a warning to its customers and the general public regarding misleading videos circulating on social media that falsely depict its senior officials. These videos incorrectly assert that the bank’s top management is endorsing investment schemes with unrealistic returns.

SBI has confirmed that neither the institution nor its officials are associated with these schemes. The bank urges everyone to exercise caution and avoid falling victim to these scams.

In a recent post on X (formerly Twitter), SBI issued a public notice alerting users about these deceptive videos, stating: “ALERT – PUBLIC CAUTION NOTICE.”

Understanding Deepfake Videos

Deepfake videos are convincingly realistic but fabricated clips created using artificial intelligence (AI) and advanced technologies.

These videos can manipulate or alter a person’s face or voice, making it appear as though they are saying or doing things they never actually did.

Often, deepfakes are used maliciously, including spreading misinformation, impersonating individuals, or orchestrating scams. Their realistic appearance makes it challenging to distinguish them from authentic content.

SBI’s Message on X

ALERT – PUBLIC CAUTION NOTICE: BE AWARE OF DEEPFAKE VIDEOS

The State Bank of India warns all customers and members of the public that Deepfake videos of its top management are being disseminated on social media, falsely claiming the launch or endorsement of certain investment schemes.

These videos attempt to lead individuals into investing their money in dubious schemes through the use of sophisticated technology.

State Bank of India Alerts Customers on New Fraud Scheme

Recently, the State Bank of India warned customers about a new fraud scheme involving imposters pretending to be officials from the Central Bureau of Investigation (CBI) or the Income Tax Department. These fraudsters threaten victims with legal action and heavy fines to extort money.

How the Fraud Works:

  1. Fake Call Initiation: The imposter contacts victims, often using video calls, and presents convincing false information about personal data like KYC numbers or property details to gain trust.
  2. Instilling Fear: Once the victim is convinced, the fraudster claims that the victim has legal troubles, such as tax evasion, inciting panic and fear, which they exploit to request sensitive information.
  3. Escape Route Offered: The fraudsters offer a way out by demanding a bribe to resolve these supposed legal issues, promising that any money paid will be refunded after the investigation.

Key Points to Stay Safe:

  • Verify the Source: Always confirm the identity of callers asking for personal details.
  • Don’t Share Personal Information: Avoid giving out sensitive information to unexpected contacts.
  • Be Skeptical of Threats: Legitimate organizations communicate through official channels and will not rush you.
  • Report Suspicious Activity: Inform your bank and local authorities if you encounter suspicious messages.
  • Use Security Features: Activate two-factor authentication and utilize strong passwords for your accounts.

We take all necessary measures to keep you and your information protected.

Mobile Security

Smart Phone and app-based services are now being used increasingly to conduct banking transactions through your mobile devices. While this is extremely convenient, you need to follow the best practices mentioned below in the use of mobile phones while doing financial transactions.

Best Practices for Safe Usage of Mobile Phones:

  • Strong passwords/biometric permission should be enabled on your phone.
  • Keep your SIM card locked with a PIN to avoid misuse. In case of loss or theft of the mobile device; contact your service provider to block the SIM card immediately.
  • Your bank account number or PIN should never be stored on the mobile phone.
  • Get an anti-virus software installed on your mobile and keep it updated.
  • Regularly monitor the permissions of critical apps installed in your mobile phones and keep a track of unnecessary and unused apps.
  • Never use Banking apps on jailbroken or rooted devices.
  • Avoid connecting phones to public wireless networks.
  • Report the loss of your mobile phone to the bank to disable PIN and access to the bank’s account through Mobile Banking app.

Digital Arrest Scam

The National Cyber Crime Reporting Portal (NCRP) has recorded numerous complaints about scams involving cyber criminals posing as officials from Law enforcement Agencies. These scammers use intimidation, blackmail and “Digital House Arrests” to deceive victims.

Overview of the “Digital House Arrest” Scam:

This scam involves fraudsters impersonate Law Enforcement officials and falsely claim to investigate crimes, using digital tools and fake setups to intimidate victims into transferring money to avoid fabricated legal troubles.

How the Scam Works:

  • Scammers use fake police stations and uniforms to appear authentic, making video calls through platforms like Skype, Telegram, or WhatsApp.
  • They falsely claim to have discovered illegal items, such as drugs or fake passports, in a parcel addressed to the victim.
  • Sometimes, they assert that the victim is involved in money laundering and an arrest warrant has been issued.
  • Personal details like Aadhar, PAN, and SIM information are misused to threaten victims with fabricated legal cases and arrests.
  • Victims are forced into sending money to resolve these fictitious issues and may be forced to stay on video calls, experiencing a “digital arrest,” until they transfer money.

Advice to customers :

  • Verify the Caller : Always check the caller’s identity by contacting the relevant law enforcement agency using official contact details published on their official website.
  • Protect Your Information : Do not share personal or financial information over phone or video calls unless you are sure of the caller’s legitimacy.
  • Do Not Send Money : Avoid sending money based on such calls or threats.
  • Report Suspicious Calls : Report any suspicious calls or scams to your local cyber police authorities immediately.
  • Seek Help : Report incidents to the cybercrime helpline number 1930 or visit http://www.cybercrime.gov.in for assistance.

Modi Government’s Privatization Roadmap Sparks Rs 7 Lakh Crore PSU Stock Surge in India

In just ten days, Public Sector Undertaking (PSU) stocks in India have amassed an impressive profit of Rs 7 lakh crore. This exceptional surge is attributed to Prime Minister Narendra Modi’s resolute management approach, drawing admiration from analysts and investors alike.

Read more: Last date for submission of nomination for Nari Shakti Puraskar-2020 extended till February 6

A report in the Economic Times sheds light on the various factors propelling the remarkable performance of PSU stocks. A key contributing factor is the government’s emphasis on privatization and strategic disinvestment of state-owned enterprises. The recent announcement by Finance Minister Nirmala Sitharaman outlining the government’s intentions to privatize multiple PSUs has significantly bolstered investor confidence.

“The Modi government’s transparent privatization roadmap has infused investors with confidence. The market is responding positively to the potential for more efficient and profitable management of these enterprises,” stated an industry expert.

Additionally, the robust financial performance of numerous PSUs has played a pivotal role in enhancing investor trust. Companies such as State Bank of India (SBI), Bharat Petroleum Corporation Limited (BPCL), and Coal India have reported strong quarterly results, further fueling the surge in their stock prices.

“PSUs are exhibiting robust financial health, and their profitability is attracting investors. The market recognizes the potential for substantial returns from these stocks,” commented a market analyst.

Read more: Nifty ended below 17200, Sensex dropped 581 points, PSU Banking stocks soared, Axis bank up 2.88%

Another contributing factor to the rally is the appealing valuation of PSU stocks. Many of these stocks were previously trading at comparatively lower valuations in comparison to their private sector counterparts, making them an attractive prospect for value investors. The recent surge has helped to mitigate this valuation gap to a certain extent.

“The undervaluation of PSU stocks presented an enticing opportunity for investors. With ongoing reforms and strategic initiatives, the potential for growth in these stocks is significant,” explained an investment strategist.

The rally in PSU stocks has also been buoyed by favorable global market trends and increased foreign institutional investment. As global markets remain bullish, Indian stocks, including PSUs, have reaped the benefits.

Despite the substantial gains brought about by the rally, experts caution investors to exercise vigilance. The market can be volatile, underscoring the importance of thorough research and consideration of long-term prospects before making investment decisions.

The recent upsurge in PSU stocks is emblematic of a convergence of government reforms, strong financial performance, attractive valuations, and positive global market trends. As the Modi government continues to drive privatization and strategic initiatives, the performance of PSU stocks will remain a focal point for investors in the foreseeable future.

Read more: Budget 2022: There will be a new announcement on bank privatization, less hope of financial help to banks in the budget

Must Read: These Six Big Changes From Today

SBI’s Home Loan Costlier

The country’s largest bank State Bank of India (SBI) will increase its internal benchmark lending rate (EBLR) by 0.4 per cent to 7.05 per cent. Whereas RLLR will be more than 6.65 per cent. According to SBI’s website, the 10 bps increase in MCLR will also be applicable from June 1.

Expensive Third Party Motor Insurance Premium

The Ministry of Road Transport and Highways has increased the premium for third party motor insurance for various categories of vehicles with effect from June 1, 2022. This means that it will become costly for common people to insure their cars and bikes. However, a 15 per cent discount has been given on third party insurance premium for electric vehicles (e-vehicles) and educational institution buses.

Axis Bank Hikes Minimum Balance

Axis Bank has increased the average monthly balance. Now instead of 15 thousand, 25 thousand rupees will have to be kept as a minimum balance. Less than this will incur a fee. This rule will be applicable to the accounts of semi-urban and rural areas. Now a minimum of one lakh rupees rule has been imposed in the form of term deposit.

Gold Hallmarking

The second phase of hallmarking of gold jewellery and artificial jewellery will start from June 1. In this, 256 districts have been declared earlier while there will be 32 new districts. In these 288 districts, only 14, 18, 20, 22, 23 and 24-carat jewellry will be sold. Hallmarking will be mandatory on these.

SBI’s Big Setback To its Home Loan Customers

If you are a customer of State Bank of India (SBI) or you are planning to take home loan from SBI, then the beginning of the new month will increase the expenses for you too. In fact, let us tell you that SBI has increased its home loan external benchmark lending rate (EBLR) by 40 basis points (bps) to 7.05 per cent, while the RLLR will be 6.65 per cent plus CRP. According to the information shared on SBI’s website, these increased interest rates will be effective from June 1, 2022. It may be noted that earlier, the EBLR was 6.65 per cent, while the repo-linked lending rate (RLLR) was fixed at 6.25 per cent.

SBI Earns Record Profit

SBI’s fourth quarter profit jumped 41 per cent to a record Rs 9,114 crore due to a fall in bad loans. A year ago, the bank had made a profit of 6,451 crores. The bank’s profit on a consolidated basis stood at Rs 9,549 crore.

Gross NPAs declined from 4.98 per cent to 3.97 per cent during this period. Net NPAs also declined to 1.02 per cent from 1.5 per cent. The bank has declared a dividend of Rs 7.10 per share. 

SBI Not Issued ‘No Due Certificate’ To Farmer For 31 Paise Outstanding, High Court Said Harassment

State Bank of India has been strongly reprimanded by the Gujarat High Court. Actually, this matter is related to the land deal of a farmer. The bank did not issue a ‘No Due Certificate’ (No Dues Certificate) to this farmer as only 31 paise remained outstanding. 

The court expressed displeasure in this way

The court of Justice Bhargava Karia of the Gujarat High Court, during the hearing of a petition filed in this regard, on Wednesday expressed displeasure with the bank saying that it is nothing but harassment. The judge said that the limit is reached, a nationalized bank says that no dues certificate cannot be issued because only 31 paise remains outstanding. 

The plot was purchased in 2020

Significantly, the petitioners Rakesh Verma and Manoj Verma had bought a plot in the year 2020 from farmer Shamjibhai and his family in Khorja village near Ahmedabad city. For this, Shamjibhai had sold the land to the petitioner for Rs 3 lakh even before the full repayment of the crop loan taken from SBI, so the petitioner (new owner of the land) could not register his name in the revenue records due to bank charges on the plot.

Certificate not given after repayment of loan

The farmer later repaid the entire loan of the bank, but despite this, SBI did not issue the said certificate due to some reason. Thereafter, the new buyer of the land moved the High Court. Justice Karia asked the bank to produce the no dues certificate in the court, to which SBI’s counsel Anand Gogia said it was not possible as the farmer still owes 31 paise. This is a systemic matter.

These Eight Rules Changing From April Will Have Direct Impact On Your Pocket

Tax on PF account

From April 1, the existing PF account can be divided into two parts, which will also be taxed. According to the rules, there will be no tax on contribution up to Rs 2.5 lakh in PF account. Interest earned on contributions above this will be taxed.

GST e-Invoicing

The Central Board of Indirect Taxes and Customs has reduced the turnover limit for issuance of e-invoice under GST to Rs 20 crore. Earlier this limit was Rs 50 crore. The new rules of GST are coming into effect from April 1.

Mutual Funds

You will not be able to make payments for investments in mutual funds by cheque, bank draft or any other physical medium. Mutual fund transaction aggregation portal MF Utilities (MFU) is discontinuing cheque-demand draft payment facility with effect from March 31. To invest in mutual funds from April 1, payment will have to be made through UPI or net banking.

Post Office Rules 

The rules of post office are about to change. The interest earned on the Post Office Monthly Income Scheme, Senior Citizen Savings Account and Term Deposit Account will be credited directly to the account. Interest will no longer be available in cash. Therefore, from April 1, a savings account or bank account will have to be opened in the post office.

Shock to Home Buyers 

First time home buyers will not get the benefit of 80EEA from April 1. In Budget-2021, the tax exemption under this section was extended till March 31. According to this, if the value of the house is less than 45 lakhs, then you can claim tax exemption of up to 1.50 lakhs on home loan interest payment. Now this facility will not be available.

Special FD Scheme

For senior citizens; SBI, ICICI Bank, Bank of Baroda, HDFC Bank had started a special fixed deposit (FD) scheme in Corona period. Senior citizens get more benefit in this. However, HDFC Bank and Bank of Baroda may discontinue this scheme from April 1.

Cryptocurrency Tax

From April 1, the tax rules on cryptocurrencies may also change. The Finance Minister had said that all virtual digital assets or crypto assets will be taxed at 30%. Apart from this, whenever someone sells a crypto asset, TDS will be deducted at one percent of its sale.

Axis Bank and PNB 

Axis Bank have increased the minimum balance limit in savings account from Rs 10,000 to Rs 12,000. The bank has also changed the stipulated limit of free cash withdrawal to four times or Rs 1.5 lakh. On the other hand, PNB is implementing the Positive Pay System (PPS) rule from April 4. Under this, verification will be necessary for cheque of Rs 10 lakh and above.

Don’t Scan QR Code To Receive Money. SBI Alerts Customers

Today, in the modern era where all the work is now being done online, especially in the Corona era, the use of cashless transactions has increased. In such a situation, thugs find new ways to cheat people. In the recent past, there have been cases of fraud by scanning the QR code from the mobile. In view of these increasing cases, SBI has alerted about customers by tweeting. The bank told that if you get any QR code, and it is said that it will bring money to your account, then get alerted immediately and understand that this is a fraud.

State Bank of India tweeted from its official Twitter account and informed that you do not need to scan any code to receive money.

https://twitter.com/TheOfficialSBI/status/1495286034413752320?ref_src=twsrc%5Etfw

How QR Code Works 

The information inside the QR code is encrypted. You can be redirected from here to payment related information like someone’s phone number, payment gateway, website etc. You only scan it to decrypt it.

How is cheating

SBI said in the tweet that you can scan the QR code only for giving money. Money can never be received by scanning. Many times, due to lack of complete information, people can make a mistake by coming in the words of thugs. In the last few years, a lot of frauds related to this have happened.

Follow these tips 

1.) Keep in mind that the UPI PIN is entered only at the time of sending money. Not while receiving.

2.) While sending money to any person, make sure to verify the UPI id, name, mobile number.

3.) Never share your UPI pin with anyone.

4.) In case of any problem, contact the bank directly.

5.) In case of any other technical problem, you can get information by going to the help section of the app.

SBI Scheme: Deposit Lump Sum Money And Earn With Interest Every Month

SBI Annuity Deposit Scheme

Deposit for how much period 

According to the SBI website, deposits can be made in this scheme for 36, 60, 84 or 120 months. This scheme is available in all branches of SBI. There is no maximum deposit limit in this. At the same time, the minimum annuity is Rs 1000 per month. In this, Universal Passbook will also be issued to the customer. Any Indian citizen can open this account. Minors can also get the facility of this scheme. In this account can be opened in both single or joint mode. 

Annuity is available on the due date of every month 

In this scheme of SBI, the annuity will be paid from the due date of the next month of deposit. If any month does not have that date (29, 30 and 31), then the annuity will be received on the 1st of the following month. Annuity payment will be credited to the linked savings account or current account after deducting TDS. Under the SBI Annuity Deposit Scheme, the common customer and senior citizen get the interest earned on the term deposit. Senior citizens get 0.50 percent more interest on SBI FDs. Nomination facility is available in this. Universal passbook will also be issued to the customer. There is also the facility of transfer from one branch to another.

Prepayment facility is also available 

In this scheme of SBI, you can get overdraft/ loan amount up to 75% of the balance amount of the annuity on need. After availing the loan/overdraft, the annuity payment will be credited to the loan account. At the same time, on the death of the depositor, the scheme can be closed prematurely. Apart from this, time prepayment can also be done for deposits up to Rs 15 lakh. At the same time, pre-mature penalty will also have to be paid at the same rate as the rate on FD. That is, according to the term deposit, there is a pre-mature penalty in this scheme.

Car Loan Calculator: How Much EMI Will Have To Be Paid For Car Loan Of Rs 10 Lakh

Reserve Bank of India (RBI) has not made any changes in its recently released monetary policy repo rate and reverse repo rate. Repo rate has been retained at 4 per cent and reverse repo rate at 3.35 percent. With no increase in policy rates, it is clear that there is little hope of increasing interest rates on loans. In such a situation, the interest rates of the car loan will remain at the lower level. The country’s largest bank SBI is currently offering car loans at an initial 7.20 percent in the festive offer. Let us see if you are taking a car loan of 10 lakhs for 5 years, then what will be your EMI (Equated Monthly Installment). 

Loans will remain cheap due to no increase in rates!

Due to non-change in interest rates by the Reserve Bank, the loan rates i.e. lending rates may remain at the lower level for the time being. That is, taking a car loan or home loan is not getting expensive for you right now. The repo rate has a direct effect on the interest rates of the home loan. Repo rate is the interest rate at which commercial banks take loans from RBI. The increase in the repo rate means that when it is costly for banks to take loans, they will also make it expensive for the customers. In such a situation, the loan is not expected to be expensive at the moment. At the same time, reverse repo rate, is the rate at which banks get interest on their deposits with RBI.

From October 2019, the Reserve Bank has made it mandatory for banks to link floating rate personal loans, auto loans and home loans etc. to the repo rate. Most of the banks are offering auto loans, home loans at Repo Linked Lending Rate (RLLR). It is also called external benchmark rate (EBR). The impact of any change in the repo rate in RLLR loans to customers is immediately visible as compared to the Marginal Cost of Funds (MCLR) linked loans. MCLR was started from April 2016. MCLR is an internal benchmark. Actually, this is the interest rate of a bank, below which it does not give loan to anyone. It is based on the bank’s own cost of funds.

10 lakh car loan EMI

The initial interest rate on SBI auto loan interest rate (fixed rate) is 7.20 percent. On the other hand, if you take a car loan for 5 years based on credit score, then the initial interest rate will be 7.25% (0.25% + 1 year MCLR). This will be the floating rate. Now let us see the calculation of EMI. 

SBI Car Loan (Fixed Rate)

Loan Amount: Rs 10 lakh 
Loan Tenure: 5 Years 
Rate of Interest: 7.20% p.a. (Fixed Rate) 
EMI: Rs 19,896 
Total Tenure Interest: Rs 1,93,742  
Total Payment: Rs 11,93,742  

SBI Car Loan (CIC Score Based) 

Loan Amount: Rs 10 lakh 
Loan Tenure: 5 Years 
Rate of Interest: 7.25% p.a. (Fixed Rate) 
EMI: Rs 19,919 
Total Tenure Interest: Rs 1,95,162  
Total Payment: Rs 11,95,162  

Why should you check EMI?

Before taking the loan, how much installment will have to be paid every month, that is, how much your EMI will come, it should be calculated first. With this you will be able to know how much loan you can take. That is, what is your loan taking capacity. In such a situation, if you are going to take a car loan, then you will be able to plan it in advance. Also, by calculating the EMI beforehand, you can know the total loan amount, tenure and total repayment. You can plan for loan repayment or prepayment.

(Note: SBI car loan EMI here is at the bank’s initial interest rate. This detail is taken from the bank’s official website. This is a calculation. Interest rates may vary depending on your credit score, income, age and other criteria.) 

SBI vs HDFC: To Get FD Of 5 Lakhs For 2 Years, Where is The More Profit After Increasing Interest Rates

Interest rates on deposits from banks are now being increased. Bank Fixed Deposit or Term Deposit is a traditional investment option. Bank FDs are a better way to give a safe and fixed income. The country’s largest bank SBI recently increased the interest rates of its term deposits. After this HDFC Bank has also decided to increase the interest on FD. The specialty of bank FDs is that you can make a fixed income by making a lump sum deposit. In this, a fixed interest is available on the principal amount i.e. the deposit. Now in addition to this, if you have made an FD for 5 years, then you can also take advantage of tax deduction.

SBI vs HDFC Bank: Interest Rates on 2 Year FD

According to the information available on SBI’s website, the bank is offering 5.20 percent annual interest to regular customers and 5.70 percent to senior citizens on 2-year FDs. On the other hand, if we talk about HDFC Bank, then on 2-year FD, it is giving 5% annual interest to regular customers and 5.50 percent to senior citizens. These interest rates are applicable on deposits of less than Rs 2 crore. 

SBI: How much profit on 5 lakh deposit

According to the FD calculator, if you deposit a lump sum deposit of Rs 5 lakh in SBI for 2 years, then you will get Rs 5,54,429 on maturity. In this, interest of Rs 54,429 will be earned. On the other hand, if you are a senior citizen, then after 2 years on FD of Rs 5 lakh, you will get Rs 5,59,925. In this, there will be an income of Rs 59,925 from interest.

HDFC Bank: How much profit on 5 lakh deposit

According to the FD calculator, if you deposit a lump sum deposit of Rs 5 lakh in HDFC Bank for 2 years, then you will get Rs 5,52,243 on maturity. In this, interest of Rs 52,243 will be earned. On the other hand, if you are a senior citizen, then on FD of Rs 5 lakh, you will get Rs 5,57,721 after 2 years. In this, there will be an income of Rs 57,721 from interest.

Benefits of Bank FD

Fixed deposits/ term deposits of banks are considered safe. Tax exemption is available in section 80C of income tax act on tax saving FDs of 5 years. However, the interest earned from FD is taxable.

SBI Issues Statement On Biggest Bank Scam in The History Of India

In the ABG Shipyard scam case, the largest public sector bank SBI has issued a statement. The bank has said that it had lodged a complaint with CBI in November 2019 itself. According to the statement, ABG Shipyard was incorporated on 15 March 1985 and it was doing banking arrangement since 2001.

Became NPA in 2013

Consortium was arranged for more than 2 dozen lenders. The main bank in this was ICICI. At the same time, due to poor performance, the account became NPA on 30 November 2013. Many efforts were made to revive the company but without success. In March 2014, all the lenders restructured the account under the CDR mechanism. But the shipping industry was going through the worst recession ever. Due to which the operation of the company could not be revived.

E&Y had given the report

Due to failure of reconstruction, the account was classified as NPA in July 2016 with effect from 30th November 2013 retrospectively. Lenders appointed E&Y (Ernst & Young) as forensic auditors during April 2018. E&Y report was placed before the Fraud Identification Committee of lenders in 2019. The fraud was primarily related to misappropriation of funds, misappropriation, and criminal breach of trust.

SBI Customer: How To Download Home Loan Interest Certificate To File Your ITR?

Home loan interest certificate is a statement of home loan account provided by your bank. In this, full details of the interest and principal amount you have paid during a financial year are given. It is used as a home loan repayment proof. Home loan interest certificate is mainly used for claiming income tax deductions on home loan interest. This means that a home loan certificate has to be submitted while filing income tax return to avail tax benefits on home loan.

Home loan interest certificate can be downloaded online. In today’s time almost every bank is providing online facility to download this certificate. The process of downloading it may be different in every bank. With the availability of online facility, now the customers have got relief from visiting the bank branch. Interest certificate can be downloaded in just a few steps through net banking.

How to Download SBI Customer Certificate

State Bank of India (SBI) is offering its customers the facility to download home loan interest certificate online. You must have SBI Net Banking enabled to download it.

First of all log in to the Personal Banking section of SBI Internet Banking.

Now select e-Services.

After that select the option ‘My Certificates’.

The many options now exposed include Home Loan Interest Certificate (Provisional) and Actual Home Loan Interest Certificate.

Select the option of the type of certificate you want out of the two.

Select the home loan account number and submit.

After this, a provisional or actual home loan interest certificate will appear in front of you. 

It can be downloaded through the ‘view/ download’ option at the end.

This certificate can be downloaded in PDF or HTML format.

SBI Alert: Do This Work Immediately! Unless You Will Not Be Able To Do High Value Transactions

State Bank of India (SBI) has issued an alert for its customers that if they have not linked their Aadhaar card with PAN, get it done immediately. The deadline for linking Aadhaar with PAN is about to end. If you do not link your Aadhaar with PAN before the stipulated time limit, then your PAN card will be cancelled. In such a situation, you will not be able to do high value transactions.

Get the link done before 31st March

SBI said from its official Twitter handle that if you want to avoid any inconvenience and want to use your account without any deadlock, then link your PAN with Aadhaar. The bank said that it is mandatory to link PAN with Aadhaar. Otherwise, you will not be able to do bank transactions above a certain limit.

The government has fixed March 31, 2022 as the last date for linking PAN with Aadhaar.

How to link PAN with Aadhaar

To link PAN with Aadhaar, you must first visit the official website of Income tax website https://www.incometax.gov.in/iec/foportal. Here you will see the Link Aadhaar option, click on it. After this a new page will open, where you will have to fill the required details. If you have only year of birth in your Aadhaar card, then tick the box of ‘I have only year of birth in aadhaar card’,. After successfully verifying your details with UIDAI, your PAN-Aadhaar linking will be completed.

Link PAN with Aadhaar through SMS

How to link PAN-Aadhaar card online (How to link PAN-Aadhaar card online) To link
Aadhaar PAN through an SMS, an SMS has to be sent to 567678 or 56161. SMS in this format UIDAIPAAN (12digit Aadhaar number) space (10 digit PAN number) means if someone has Aadhaar card number ABCDXXXXXXXXXX and PAN card number ABCXXXXXXX then the SMS format will be “UIDAIPANABCDXXXXXXXXXX ABCXXXXXXX”.

PAN is necessary for many works

Having a PAN card is a must for many important tasks like opening a bank account, buying mutual funds or shares and even doing cash transactions above Rs 50,000. However, all such inoperative PAN cards will become operative when the PAN card holder does the work of PAN-Aadhaar linking.

Know About The Benefits And Rules Of SBI Gold Current Account

SBI Current Account benefits: If you have a business and do daily transactions then you need a current account. India’s largest bank is offering many great benefits (SBI Current Account benefits) on the opening of State Bank of India Current Account. There is a special account in SBI namely SBI Gold Current Account. In this, the bank is offering many benefits.

Benefits of SBI Gold Current Account

If you open a gold current account in State Bank of India, then your monthly average balance is Rs 1,00,000. You can deposit Rs 25 lakh in this account for free every month. A cheque book of 300 multicity pages will be provided to you every month. If you want to transfer money online then you can do RTGS and NEFT for free. You can avail 50 free demand draft every month.

Most secure and fast Corporate Internet Banking facility

You can withdraw cash from your home branch without any charges. Apart from this, you can withdraw and deposit money in all over 22,000 SBI branches. You will be able to take the facility of the most secure and fast Corporate Internet Banking. Monthly statement of current account will be available for free. If you want, you can also get your current account transferred to any other branch.

Cash deposit facility in non home branch

You will also be able to deposit Rs 5 lakh per day in a non-home branch, while you will be able to withdraw unlimited free cash in the home branch. The account holder himself can withdraw one lakh rupees every day from the non-home branch.

If Your Saving Account is in SBI, Then This Big Alert is For You!

If your Saving ccount is in the country’s largest government bank i.e. State Bank of India, then this news is for you. State Bank of India told through a tweet to make its customers aware that how you can avoid online fraud. Let us tell you that these days digital transactions are increasing very fast, due to which the cases of fraud are also increasing very fast.

SBI tweeted

State Bank of India gave information by tweeting and told how you can keep your money safe and avoid digital fraud. State Bank of India told how to do transactions safely so that no fraud can happen.

Don’t get caught in the trap of free gifts and vouchers

In the last few days, many such cases have come to the fore where fraudsters use free gifts and vouchers to lure customers and make money disappear from their accounts. In such a situation, people get lured by free gifts and click on unknown links and in this way all the money disappears from people’s accounts.

SBI released video 

State Bank of India shared a video in a tweet and said that State Bank and its employees never ask for sensitive information such as debit card details, internet banking, OTP from customers. Apart from this, the message of clicking on the link of any third party is also not sent.

What did SBI say?

State Bank told the customers that you do not have to share your bank account details with anyone. At the same time, no customer should click on unknown links. Apart from this, the reply to the bank email is also not to be given. 

You can complaint here

Apart from this, you can complaint about such fraud to the Cyber ​​Crime Department. You can also make a complaint on the website of cybercrime https://cybercrime.gov.in or on the helpline number 155260.

Good News! No Need To Visit Bank Branch For SBI YONO Business App

If you want to use SBI YONO Business then this news is for you. Today we will tell you how you can easily register yourself on this app (Yono Business App). Yono Business app has been launched by State Bank of India, whose basic objective is to provide platform to Corporate and SME i.e. small and medium scale entrepreneurs. Here these customers will be able to use banking facilities easily. Actually, customers using this app will not have to use different banking portals or apps.

SBI launches YONO Business APP

YONO Business APP launched by SBI is one such latest app in which new technology and digital services have been included. With this, customers can use it easily. Through this single app, corporate customers get the benefit of many features like Corporate Internet Banking, eTrade, Supply Chain Finance, Cash Management Products and eForex etc.

This app is effective for these customers

Actually, the Yono app is for customers with SBI Savings Account and YONO Business has been introduced for current account and corporate customers. In this app, customers get the facility of SBI Internet Banking. Customers with PM e Mudra and SBI e Mudra Loan can also use this app.

Great Features of YONO Business App 

  • SME customers can take pre-approved loans through this app.
  • It takes less forex related services and transaction time. In this, forex services and transactions have been made completely digital. In this, the customer is given an e-Forex dashboard in which he can see his active orders and deals related to Forex. Corporate customers can also see the latest market trends from this app. Customers can also book their forward contracts online without visiting the branch through the e-Forex portal. And you can cancel it too. 
  • Due to the advanced API technology of this app, customers can do real time rate booking. Old customers can place a request from import to insurance to take credit through this app in just 10 minutes. Many fields are automatically opened in this app. In this app, customers can easily upload digital documents. Multiple requests can be made on this app with a single click. In this, customers can see the status of their application online.
  • Customers can change anything online in their LC through this app. You can also close the LC.

How to do YONO SBI Business Registration?

  • If you are an existing customer of SBI and you have a current account then you can use ‘yono business’.
  • To register yourself on this app, first go to ‘Yonobusiness.sbi’.
  • Now click on register button on Yonobusiness home page.
  • Now here first enter your corporate details.
  • Now select ‘Single User’ or ‘Multi User’.
  • If your company is small and you operate the account alone then select Single User and if your company is big then select Multi User.
  • Now validate it by entering your account number on the next page.
  • In the next step, choose what product and service you want.
  • Now enter all your details being asked here.
  • Now you see your details on ‘preview’ and then submit.
  • After this download all the PDF forms and take a print out of them.
  • Now verify your signature on all the print outs.
  • Now submit these documents to your home branch.
  • If you want, you can check the status of your application anytime by clicking on ‘registration & application’.
  • After this, the bank will check all your details and validate them.
  • After validating, the bank will give you the user id and password.
  • After this you will be able to use YONO Business App anytime. 

SBI authorised to issue and encash Electoral Bearer Bond 2018 through its authorised branches

The Government of India has notified the Electoral Bond Scheme 2018 vide Gazette Notification No. 20 dated 02nd January 2018. As per provisions of the Scheme, Electoral Bonds may be purchased by a person (as defined in item No. 2 (d) of Gazette Notification), who is a citizen of India or incorporated or established in India. A person being an individual can buy Electoral Bonds, either singly or jointly with other individuals. Only the Political Parties registered under Section 29A of the Representation of the People Act, 1951 (43 of 1951) and which secured not less than one percent of the votes polled in the last General Election to the House of the People or the Legislative Assembly of the State, shall be eligible to receive the Electoral Bonds. The Electoral Bonds shall be encashed by an eligible Political Party only through a Bank account with the Authorized Bank.

State Bank of India (SBI), in the XVII Phase of sale, has been authorised to issue and encash Electoral Bonds through its 29 Authorized Branches ( as per list enclosed)  w.e.f. 01.07.2021 to 10.07.2021.

The Electoral Bonds shall be valid for fifteen calendar days from the date of issue and no payment shall be made to any payee Political Party if the Electoral Bond is deposited after expiry of the validity period. The Electoral Bond deposited by an eligible Political Party in its account shall be credited on the same day.  

Click here for Electoral Bond Scheme 2018 annexure

 

SBI authorised to issue, encash Electoral Bonds from Oct 19-28

SBI authorised to issue, encash Electoral Bonds from Oct 19-28

The Ministry of Finance has said that the State Bank of India (SBI), in the 14th Phase of sale, has been authorised to issue and encash Electoral Bonds through its 29 Authorized Branches with effect from 19th October to 28th of October this year. Electoral Bonds will be valid for fifteen calendar days from the date of issue and no payment will be made to any payee Political
Party if the Electoral Bond is deposited after expiry of the validity period. The Ministry said, the Electoral Bond deposited by an eligible Political Party in its account will be credited on the same day. It said, Election Commission of India has accorded ‘No objection’ from Model Code of Conduct (MCC) angle with conditions that no political functionary will make any reference in this regard during any public speech or communication to the press or public in the constituencies going for poll and the relevant provisions of MCC willl be strictly followed.The Government had notified the Electoral Bond Scheme in 2018.

Thanks for reading “SBI authorised to issue, encash Electoral Bonds from Oct 19-28”

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BIG NEWS FOR LOAN BORROWERS. ADDITIONAL 90 DAYS PROVIDED FOR PAYMENT OF EMI

Highlights

The Reserve Bank has issued a directive that the loan borrowers will be given an additional 90 days after the 3-month moratorium period so that they can resume EMI.

The RBI has currently changed the definition of loan defaulters. In his address, Governor Shaktikanta Das said that loan holders who have opted for the Moratorium period will be given an additional time of 90 days after 3 months so that they can resume EMI. During this time it will not be considered NPA.

If the loans were regular till February 29 and those who have opted for the three-month Moratorium option in March, then the loan will not be declared as NPA for 180 days. The bank will not declare NPA even if the EMI is not deposited in such loan till September.

Disclaimer : IN NO EVENT THE AUTHOR SHALL BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL OR INCIDENTAL DAMAGE RESULTING FROM OR ARISING OUT OF OR IN CONNECTION WITH THE USE OF THIS INFORMATION. THIS HAS BEN SHARED FOR KNOWLEDGE PURPOSES ONLY.

COMPLIANCE RELIEFS IN THE WAKE OF COVID-19 PANDEMIC

To ease the compliance related to Taxation/MCA, our Hon’ble Finance Minister of India Smt. Nirmala Sitharaman has announced major relevant measures, on 24th March, 2020, to fight against the COVID-19 pandemic. Let’s begin with it.

COVID-19

The Invest India Business Immunity Platform is launched to help businesses and investors withstand COVID-19, by getting real-time updates on India’s active responses to Corona virus.

Finance Minister Nirmala Sitharaman allowed States and Union Territories to lift food grains from FCI on three-month credit basis, for distributing to poor and needy, amid the corona virus scare.

INCOME TAX

The last date for filing Income Tax Returns for the A.Y. 2019-20 extended to 30.06.2020

Penal Interest at a reduced rate of 9% p.a. will be levied on late payment of tax till 30.06.2020

Aadhar-PAN linking can now be done till 30.06.2020

Investments for Chapter-VIA deductions for AY 2020-21 can also be done till 30.06.2020

The “Vivad se Vishwas scheme” has been extended to 30.06.2020. (i.e No 10% additional charge from now till 30.06.2020, instead of the earlier 31.03.2020)

GST

The due date of GST returns of Feb, Mar, Apr 2020 is now extended to 30.06.2020

For Turnover < 5 Cr – No Late fee, penalty and interest to be levied

For Turnover > 5 Cr – No Late fee and penalty, whereas Interest at a reduced rate of 9% p.a.

Time limit for opting Composition Scheme for F.Y. 2020-21 now extended to 30.06.2020

CORPORATE AFFAIRS

CARO 2020 (recently notified) will be applicable from F.Y. 2020-21, instead of F.Y. 2019-20

No violation for independent directors, who did not held even one meeting in F.Y. 2019-20

Non-compliance of minimum residency in India for at least 182 days by at least one director, of every company under the Companies Act, 2013, shall not be treated as a violation.

BANKING INSTITUTIONS

Debit Card holders can now withdraw cash from any bank ATM for free, for the next three months.

Waiver of Minimum Account Balance (MAB) fees for next three months, till June, 2020.

Reduction of bank charges for digital trade transactions for all trade, finance and consumers.

OTHER INDIRECT TAXES

The legacy “Sabka Vishwas Scheme” deadline extended from 31.03.2020 to 30-06-2020 (i.e. No interest if dues are paid before 30.06.2020)

No interest will be charged on the disputed amount of Customs and Excise till 30.6.2020

All these measures and relaxations are to benefit the people and facilitate the smooth working of our economy, during the COVID-19 pandemic.

Disclaimer : IN NO EVENT THE AUTHOR SHALL BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL OR INCIDENTAL DAMAGE RESULTING FROM OR ARISING OUT OF OR IN CONNECTION WITH THE USE OF THIS INFORMATION.

AUTHOR : MUSKAN LALWANI (CLICK HERE TO VIEW PROFILE)

RBI FAQs ON MORATORIUM OF TERM LOANS

>> MINISTRY OF FINANCE (MOF) vide Press Release ID No. 1609820 dated 1st April, 2020 has published FAQ’s on “RBI Allowed Banks to Declare Moratorium on Term Loans.”

OVERVIEW :

Reserve Bank of India has allowed Banks to declare a three-month moratorium on all term loans outstanding as on March 1, 2020, as well as on working capital facilities.

The Indian Banks Association has answered a list of Frequently Asked Questions about the technicalities of the moratorium.


QUESTION 1 : When/what was the RBI announcement?

ANSWER : Last week, the Reserve Bank of India announced a three-month moratorium on all term loans outstanding as on March 1, 2020, as well as on working capital facilities.

QUESTION 2 : Why has RBI announced the relief package?

ANSWER : Reserve Bank of India has announced certain regulatory measures to mitigate the burden of debt servicing brought about by disruptions on account of COVID-19 pandemic and to ensure the continuity of viable businesses. It was felt that there may be a temporary disruption in the cash flows, and in some cases loss of income, for the businesses/ individuals and the present measures work to bring relief to those businesses / individuals.

QUESTION 3 : Which are the facilities eligible for availing the benefits under the RBI COVID-19 regulatory package and whether the facility is extended across the board to all borrowers?

ANSWER : All term loans (including agricultural term loans, retail, crop loans and loans under Pool Purchases) and cash credit/overdraft are eligible to avail the benefits under the package. This is available to all such accounts, which are standard assets as on 1st March 2020. Further, to avoid unnecessary paperwork the facility has been extended across the board to all the borrowers by extending repayment of term loan installments (includes interest) by 90 days. The original repayment period for term loans will get extended by 90 days e.g. a loan repayable in 60 installments maturing on 1st March 2025 will mature on 1st June 2025.

QUESTION 4 : Is rescheduling of payments applicable for all kinds of term loans?

ANSWER : It is applicable for all term loans in all the segments, irrespective of the segment and the tenor of the term loans.

QUESTION 5 : Is rescheduling of term loans only for principal amount or it also includes interest?

ANSWER : Rescheduling of principal can be done for a period of three months falling due between March 1, 2020 and May 31, 2020. For example, where the last installment of a term loan falls due for payment of on say 1st March 2020, it will become payable on 1st June 2020.
For EMI based term loans, it will be three EMIs falling due between 1st March 2020 and May 31st, 2020 and the tenor will be extended by three months and have to be repaid during the extended period, as per the example under (2) above.
For other term loans, it will be all the installments and Interest falling due during the same period, irrespective of the tenor of payment i.e. monthly, quarterly, half yearly, annually, bullet payment etc. For term loans, where the repayment has not commenced, the interest portion for three months alone needs to be reckoned.

QUESTION 6 : What happens if the extended tenor of term loan goes beyond the maximum period stipulated for a product or as stipulated in the loan policy?

ANSWER : This can be extended for all such term loans without the need for seeking deviations or approvals.

QUESTION 7 : What will be the treatment of interest on the working capital facilities?

ANSWER : The recovery of Interest applied to cash credit/overdraft on 31st March, 30th April and 31st May 2020 is being ‘deferred’. However, the entire interest must be recovered along with the interest being applied on 30th June 2020 and in cases, where monthly interest is not being applied, along with the next interest date.

QUESTION 8 : What will be the impact of this relief by RBI on borrowers as far as reporting of default is concerned?

ANSWER : Any delay in payment leads to default and gets reported to Credit Bureaus. For business loans of Rs. 5 Crores and above, the banks report the overdue position to RBI also through CRILC. As a result of this relief package, the overdue payments post 1st March 2020 will not be reported to Credit Bureaus/ CRILC for three months. No penal interest or charges will be payable to the banks. Similarly, SEBI has allowed that Credit Rating Agencies (CRAs) may not consider the delay as default by listed companies if the same is owing to lockdown conditions arising due to COVID-19.

QUESTION 9 : That means businesses/ Individuals should necessarily take the benefit?

ANSWER : You may take the benefits under this package if there is a disruption in your cash flows or there is loss of income. However, you must take into account that the interest on the loans, though not mandatorily payable immediately and gets postponed by 3 months, continues to accrue on your account and results in higher cost.
To give you a perspective, suppose your loan outstanding is Rs 100,000 and you are charged 12 percent rate of interest on your loans, then every month you are liable to pay Rs. 1,000 as interest. In case you opt not to service the interest every month, you are liable to pay interest at 12 percent p.a. and accordingly you will pay Rs. 3,030.10 at the end of 3rd month.
Similarly, in case the interest rate is 10 percent, you are required to pay Rs. 833 p.m. or Rs. 2,521 after three months.

QUESTION 10 : Should I get upset if any bank staff or its collection agent approach me for repayment?

ANSWER : You should not get upset and tell bank staff/ collection agent that you want to avail the benefit being extended under regulatory package.

QUESTION 11 : What about my credit card dues?

ANSWER : The relief is available for credit card payments also.
In case of credit card dues, there is a requirement to pay minimum amount and if it is not paid the same gets reported to Credit Bureaus. In view of the RBI circular, the overdues in the credit card account do not get reported to the credit bureaus for a period of three months.
However, interest will be charged by the credit card issuer on unpaid amount. You should check from your card provider to arrive at interest payable. Although no penal interest will be charged during this period, but you must remember that the interest rate on credit card dues are normally much higher compared to normal bank credit and you should take a decision accordingly.

QUESTION 12 : What about interchangeability being permitted from non-fund based to fund based or FB to NFB for businesses?

ANSWER : The interest applied on the fund based portion of interchangeability availed during the said period of 1st March to 31st May 2020 will be eligible for moratorium. In respect of new sanctions accorded from 1st March and availed during the period, the interest applied on the Fund based portion would be eligible.

QUESTION 13 : In what other ways, businesses have been given relief?

ANSWER : The businesses may request the bank to re-assess their working capital requirements on account of disruption of their cash flows or elongation of working capital cycle. They may also request for reduction in margin on NFB facilities (LCs/ BGs etc) or also relief in Security. Decision will be taken by the bank branches on case-to-case basis based on the genuineness of the request.

QUESTION 14 : Are NBFCs/MFIs/HFCs eligible under the “easing of working capital financing”?

ANSWER : At present, they are not being considered under the scheme. However, RBI has made provision for sufficient liquidity support to these financial intermediaries under recently introduced Targeted Longer-term Refinancing Operations i.e. TLTRO. Liquidity availed under the scheme by Banks has to be deployed in investment grade corporate bonds, commercial paper, and non-convertible debentures over and above the outstanding level of their investments in these bonds as on March 27, 2020.
Banks shall be required to acquire up to fifty per cent of their incremental holdings of eligible instruments from primary market issuances and the remaining fifty per cent from the secondary market, including from mutual funds and non-banking finance companies. Investments made by banks under this facility will be classified as held to maturity (HTM) even in excess of 25 per cent of total investment permitted to be included in the HTM portfolio. Exposures under this facility will also not be reckoned under the large exposure framework. Banks will be able to support NBFCs/ MFIs/ HFCs etc. under this window and we do not foresee liquidity squeeze for these Financial Intermediaries.

QUESTION 15 : Will all these measures of RBI be treated as “restructuring”? What about the provisions applicable?

ANSWER : The measures stipulated by RBI under the March 27, 2020 circular on COVID-19 Regulatory Package will not be treated as “restructuring” and hence will not result in asset classification downgrade. Accordingly, the enhanced provisions for Restructured Accounts will not apply.

QUESTION 16 : What about installments/EMIs being recovered through SI/ECS/NACH? What will be the procedure for refund of the installment/EMIs, if demanded by the borrower?

Answer : Please get in touch with your bank for the revised mandate.

Read full notification / gazette with formats at : https://www.pib.gov.in/PressReleseDetail.aspx?PRID=1609820

Disclaimer : IN NO EVENT THE AUTHOR SHALL BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL OR INCIDENTAL DAMAGE RESULTING FROM OR ARISING OUT OF OR IN CONNECTION WITH THE USE OF THIS INFORMATION.

AUTHOR : CS LALIT RAJPUT (CLICK HERE TO VIEW PROFILE)

SBI’s BIG DECISION ON EMI AFTER ANNOUNCEMENT OF RBI. CUSTOMERS WILL GET RELIEF

The RBI made several important announcements on Friday to save the economy from the Corona Crisis.

SBI has also made a big announcement regarding EMI. SBI has deferred three installments of EMI of borrowers. For this, the customer does not need to apply to the bank. At the same time, the situation is not clear on the credit card payment of SBI.

Along with this, State Bank of India (SBI) on Friday gave a big relief to consumers, saying that it will give the full 75 basis points rate cut to retail borrowers. The bank said in a statement that the new rate will be effective from April 1st. Borrowers can avail loans based on an external benchmark-linked lending rate and a repo-linked lending rate.

“In response to RBI’s exceptional monetary policy in support of the economy, SBI will transfer the entire 75 basis point rate cut to its borrowers,” the statement said. SBI has reduced the external benchmark-linked lending rate from 7.80 percent to 7.05 percent annually. And the repo-linked lending rate has been reduced from 7.40 to 6.65 percent per annum.

After this, the home loan will be cheaper by about 52 rupees per one lakh on a 30-year loan plan. It is noteworthy that in order to deal with the impact on the Indian economy due to the coronavirus epidemic, the RBI on Friday reduced the repo rate by 75 basis points to 4.4.

RBI RELAXATION DUE TO COVID-19 PANDEMIC

(1.) Targeted Long Term Repos Operations (TLTROs) :

Reserve Bank will conduct auctions of targeted term repos of up to three years tenor of appropriate sizes for a total amount of up to Rs. 1,00,000 crore at a floating rate linked to the policy repo rate.

(2.) Repo rate reduce – Repo rate cut by 75 bps to 4.4%.

(3.) Reverse repo rate cut by 90 bps to 4%.

(4.) CRR reduced by 100 basis points to 3%. Rs. 1.37 trillion of liquidity to be injected.

(5.) Home loans – 3 months relaxation.

(6.) Moratorium on Term Loans : The repayment schedule and all subsequent due dates, as also the tenor for such loans, may be shifted across the board by three months.

(7.) OMOs are ongoing, LTROs are done. Regulatory moratoriums are done.

(8.) Rs. 1,00,000 crore 3 month bill auctions, first tranche of ₹25,000 crore
auction starts today.

(9.) Rs. 3,74,000 lakh crore into the system.

(10.) Min daily CRR balance reduced from 90% – 80% till 30/06/2020.

(11) Total liquidity injection 3.4% of GDP.

(12.) Deferment of Last Tranche of Capital Conservation Buffer: It has been
decided to further defer the implementation of the last tranche of 0.625 per cent of the CCB from March 31, 2020 to September 30, 2020. Consequently, the pre-specified trigger for loss absorption through conversion/write-down of Additional Tier 1 instruments (PNCPS and PDI) shall remain at 5.5 per cent of risk-weighted assets (RWAs) and will rise to 6.125 per cent of RWAs on September 30, 2020.

Full Detailed Press Release is available at : https://m.rbi.org.in//Scripts/BS_PressReleaseDisplay.aspx?prid=49582

Disclaimer:
IN NO EVENT THE AUTHOR SHALL BE LIABLE FOR ANY DIRECT, INDIRECT,
SPECIAL OR INCIDENTAL DAMAGE RESULTING FROM OR ARISING OUT OF OR IN CONNECTION WITH THE USE OF THIS INFORMATION.

AUTHOR : CS LALIT RAJPUT (CLICK HERE TO VIEW PROFILE)

RBI CLARIFICATION : NOT JUST EMI, CREDIT CARD DUES WILL ALSO BE COVERED UNDER THREE MONTHS MORATORIUM

The Reserve Bank of India has clarified that all lending institutions are permitted to grant a moratorium of three months on payments of all installments on term loans, including credit cards.

The RBI on Friday (Mar 27) announced that all banks will be permitted to allow a three-month moratorium on payment of installments of all term loans outstanding on March 1, 2020. The loan payments must pertain to the period between between March 1, 2020, and May 30, 2020.

During the moratorium period, a borrower is not required to make any repayment. Normally, the repayment begins after the loan is disbursed and the payments have to be made each month. However, the RBI has made a one-time exception in view of the financial distress arising out of the global pandemic coronavirus and the economic havoc wreaked by the lockdown imposed to control its spread.

The decision will be cover all regional, rural banks, co-operative banks, NBFCs including Housing Finance Companies, however the final decision on passing on the benefit to customers will rest with the banks.

The RBI said the moratorium will not result in asset classification downgrade and will have no adverse impact on the credit history of the borrowers.

Source : Swarajya

RBI’S EMI MORATORIUM : WILL MY INSTALLMENT BE DEDUCTED? ARE CREDIT CARD BILLS SUSPENDED? AND OTHER QUESTIONS ANSWERED

>> The RBI today allowed banks to offer a moratorium on all term loans.

>> The step was taken in light of the COVID-19 outbreak and the subsequent lockdown.

The Reserve Bank of India (RBI) today allowed all financial institutions to allow a three-month moratorium for all term loans in light of the COVID-19 outbreak and the subsequent lockdown.

In effect, banks can allow all customers to not pay their monthly EMIs for a 3-month period, and the non-repayment will not hurt their credit score.

Here are all questions on this decision answered.

Q : My EMI is due soon. Will the payment not be deducted from my account?

A : The RBI has only allowed banks to allow a moratorium. Individual banks will have to allow suspension of EMIs. This means that unless you have specific approval from your bank, your EMIs will still be deducted from your account.

Q : How will I know if my EMI has been suspended?

A : The RBI has not yet issued detailed guidelines on this. Once guidelines are issued, there will be more clarity specifically on this.

Q : How will the process work at the bank level?

A : All banks will have to discuss the moratorium and get a decision approved at their board level. Once approved, they may reach out to customers informing them of the moratorium.

Q : If my bank suspends my EMIs, will non payment result in impact on my credit score?

A : No. It will not.

Q : Which banks can offer this deferment to their customers?

A : 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) included.

Q : Is this a waiver of EMIs or a deferment of EMIs?

A : This is not a waiver, but a deferment. RBI has recommended that the repayment schedule and all subsequent due dates as also the tenor for such loans may be shifted across the board by 3 months.

Q : Does the moratorium cover both principal and interest?

A : Yes. It does. If announced by your bank, you will be exempt from payment of your entire EMI, including payment and interest for three months. This will be applicable on all loans outstanding as on March 1, 2020.

Q : What kind of loans does the moratorium cover?

A : The RBI policy statement explicitly mentions term loans, which includes home loans, personal loans, education loans, auto and any loans which have a fixed tenure. They also include consumer durable loans, such as EMIs on mobiles, fridge, TV etc.

Q : Does the moratorium cover credit card payments?

A : Since credit cards are defined as revolving credit and not term loans, they are not covered under the moratorium.

Q : I have taken a project loan for setting up a factory. Can I not pay my EMI?

A : The moratorium has been allowed on any loan classified as term loans. If the bank is convinced that you are not in a position to pay the EMIs, you will get a deferrment.

Q : What has the RBI announced for businesses?

A : The RBI has allowed deferment for interest payments for all working capital loans taken by businesses. This will be applicable in respect of all working capital facilities outstanding as on March 1, 2020. The accumulated interest for the period will be paid after the expiry of the deferment period. Moratorium/deferment will not be treated as change in terms and conditions of loan agreements and will not result in asset classification downgrade.

Updates: The copy has been revised as and when fresh information was available.

Source : CNBC TV