Tax collection at source (TCS) on LRS transactions is a regulatory requirement, amended under section 206C of the Finance Act 2020.
 

The following customers are eligible for moratorium:

• All accounts opened on or before March 1, 2020
• All accounts having the maturity/expiry date on or after March 1, 2020
• All accounts with no outstanding (EMI/ Interest) due for the period before March 1, 2020

All Term Loans/Working Capital/Overdraft/Cash Credit limits outstanding as on March 1, 2020 are eligible to avail this benefit. All eligible customers are covered under the moratorium benefit and any non-payment of EMI which is due between March 1, 2020 and May 31, 2020 would be treated under the purview of moratorium benefit policy of the bank. However for cases where customers’ EMI payments are cleared through ECS/NACH/SI, clearance of EMI will be taken as their consent to opt out of the moratorium scheme and their EMI shall be presented as per regular schedule. Should such a customer choose to avail moratorium of EMI/Interest, they can follow the below process to request for the benefit.

All customers are automatically eligible to avail the moratorium benefit in terms of deferment of dues payable between March 1, 2020 and May 31, 2020. For customers who do not opt-in specifically, any non-clearance of EMI/Interest shall be treated as an automatic opt in to avail the moratorium facility.

For customers whose EMI payments are cleared through ECS/NACH/SI, clearance of EMI will be treated as consent from the customer to opt out of the moratorium facility.

If the customer still wishes to communicate an opt-out, they can send an SMS MOROUT<space><Last 4 digits of their loan a/c no> to 5607011 from their registered mobile number.

Customers are required to send a separate SMS for each loan account, from their registered mobile number for opting out of the moratorium.

For customers who have availed the moratorium benefit, EMI for Term loan accounts would be deferred by 3 months. The interest would continue to accrue on the outstanding loan amount during the moratorium period and will be added to the principal outstanding after the moratorium. Consequently, the tenor of the loan would be extended.

For working capital limit & Dropdown Overdraft customers, the monthly interest will not be billed to their loan account till May 31, 2020. However, the interest would continue to accrue on the utilized amount during the moratorium period and will be charged to the account on June 30, 2020.

If the overdraft limit is expiring before May 31, 2020, then the expiry/drop will be extended suitably by 3 months. In case of Dropdown Overdraft Account, where the limit is dropping during the Moratorium Period, the drop date shall be deferred by 3 months.

No, EMI for the March 2020 period will not be refunded. If your EMI got cleared erroneously for the April 2020 month, we shall apply it to the account and subsequently your next EMI shall be due after 3 months (or) on a special request we can apply it as pre-payment on your loan and subsequently your next EMI shall be due after 2 months. No prepayment charges shall be levied on such amount.

Yes. You can follow the process mentioned above to opt out of the moratorium. Accordingly upon receipt of your request, we shall present your EMIs as per the original schedule.
 

No. EMI amount will remain the same.

Yes. Interest for the moratorium period will be accrued and added to the principal outstanding after the moratorium period.

There is an associated cost with the deferment of EMI’s in terms of accrued interest and its capitalization. You should only opt for this facility if you are experiencing a cash flow crunch due to the COVID-19 situation.

No. However any payment overdue prior to March 1, 2020 will continue to be reported to credit rating agencies.

Only the EMIs which are falling due between March 1, 2020 and May 31, 2020 will be eligible for moratorium benefits. Any installment or overdue amount before March 1, 2020 is required to be paid to avail the moratorium benefit, avoid additional charges & reporting to the credit bureau.