Bank of India Credit Card Extended Moratorium on Dues for 3 More Months
Earlier, in its notice dated 04.04.2020, Bank of India under RBI’s Covid-19 regulatory package offered a moratorium of 3 months to term loan borrowers and credit card holders from 01.03.2020 to 31.05.2020. The relaxation was available for making payment of Credit Card outstanding dues and EMIs falling due between the said dates and entire outstanding balance, including applicable interest and charges during the period.
Now, following the latest circular of RBI on Covid-19 regulatory package dated 23.05.2020, Bank of India extending the moratorium by additional 3 months for credit card holders to make payment of Credit Card outstanding dues and EMIs falling due between 01.06.2020 and 31.08.2020 and entire outstanding balance, including applicable interest and charges (except late payment charges) during the said period.
Below are revised FAQs for detailed information:
✅ Who all are eligible for moratorium extension?
Any credit card account that was in the current status standard as on 29.02.2020 is eligible for the moratorium. Principal as well as interest components, Equated Monthly instalments (EMIs), other credit card dues, and GST charges in the monthly billing are eligible for relief. Such accounts will be deemed to be auto-enrolled for a moratorium if no payment is received by the bank on their respective due dates falling between 01.03.2020 and 31.08.2020.
✅ How will the interest be calculated?
Interest will be accrued under the total sanctioned limit, where credit card payment is not received. Total accrued interest with credit card dues during the said moratorium period will be payable on the due date during September 2020.
✅ What if I do not pay credit card dues by the due dates during the moratorium period?
In that case, the credit card will be auto-enrolled for moratorium relief. In the case of auto-debit system wherein cardholders have given the mandate to the bank for auto-debit of their account for credit card dues recovery on the due date, the bank will attempt to debit the charge account on due dates during this moratorium period. In case of dishonour of the instructions, the bank will auto-enrol the credit card for the moratorium relief.
✅ What is a moratorium for credit cards and for how long will this be available?
Moratorium relaxation is a temporary deferment of Credit Card Dues payment (including principal, interest, 10% of revolving credit, and GST charges). It is not a waiver of outstanding amount/ EMI or interest. Currently, the moratorium period is of 6 months (i.e., March to August 2020) for making payment of Credit Card outstanding amount and/or EMIs falling due between 01.03.2020 and 31.08.2020. You will have to pay the minimum amount due/ total outstanding with accrued interest and GST charges on the due date falling after 31.08.2020.
✅ Will the bank charge interest during the moratorium period?
Yes. Interest will be accrued during the moratorium period under the total sanctioned limit and the accrued interest will be billed in the statement. It will be included in the next billing statement of the credit card. The bank will treat the interest as per its relevant terms & conditions of credit cards.
✅ Will the bank debit the dues during the moratorium period if I have sufficient balance in my charge account and my credit card payment is due?
If you have given a mandate to the bank to auto-debit your account for recovery of credit card dues on due dates, the bank will attempt to debit your charge account during this moratorium period only once on respective due dates falling between 01.03.2020 and 31.08.2020. From 05.09.2020 bank will start a daily auto-debit process for recovery of card dues from your charge account.
If the auto-debit instruction gets dishonoured on the due dates falling between 01.03.2020 and 31.08.2020, the credit card will be auto-enrolled for the moratorium relief.
Customers who are enrolled for direct billing may voluntarily defer paying outstanding during this period to avail the credit card moratorium. However, the bank encourages its customers to make a full payment towards the outstanding if possible to avoid levy of interest charges for this period.
✅ Do I have to make payment during the moratorium period?
This moratorium is just a relief given to the card holder by the bank due to disruption caused on account of the COVID-19 outbreak. However, the option to repay the credit card dues or not during this moratorium lies with the borrower. If you wish to pay during the moratorium period, you can do so by one of the following modes:
- Bill Desk Link
- Bank of India Internet Banking (If you already have BOI internet banking)
- Through BOI Branch
- Other online methods for credit card payments
It is recommended to make payment of credit card dues to reduce your interest burden.
✅ Will the bank charge interest for all purchases made on my credit card during the moratorium period?
Yes. The bank will levy interest and GST charges on all unpaid dues during this 6 months moratorium period (as per the standard rate of interest as mentioned in applicable terms & conditions) if you do not pay within the respective payment due date. Such interest amount will be accrued under the total sanctioned limit.
✅ What happens to my credit score if I do not pay outstanding during the moratorium?
There will be no impact on your credit score as rescheduling of payments (including interest) will not qualify as a default during the moratorium and will not be reported to Credit Information Companies. Normal credit bureau reporting will start from September 2020 onwards.
✅ When shall I make the payment after this moratorium period is over?
You are required to pay all unpaid balances, EMIs and all new transactions between moratorium start date till 31.08.2020, and interest along with GST charges levied during this period as per your August 2020 payment due date, i.e., on 05.09.2020.
The amount displayed in your August 2020 statement will include all previous outstanding against which payment is not made, the principal amount on transactions happened during the moratorium period, interest charged on these transactions, interest applicable on credit card, and GST charges and EMI transactions.
✅ Will the bank generate my credit card statement during the moratorium period?
Yes, the bank will generate credit card statements and will share them during the moratorium period. Interest accrued will also be mentioned in these credit card statements.
✅ Which lending institutions are covered under the moratorium requirement?
- Commercial banks: Small finance banks, regional rural banks, and local area banks
- Co-operative banks
- All-India Financial Institutions
- NBFCs: Housing finance companies and micro-finance institutions