The country's largest lender the State Bank of India (SBI) has extended the moratorium on term loan EMIs by another three months, in line with the Reserve Bank of India's (RBI) recent announcement.
SBI has also simplified the process through which the customers can opt to defer the EMIs.
"For this, the Bank has simplified the process of stopping the EMIs by initiating 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," it said in a statement.
SBI has reached out to its eligible loan customers to obtain their consent to stop their standing instructions (SIs) and NACH mandate for the EMIs falling due in June, July and August this year.
Frequently Asked Questions
A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine.
There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine.
Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time.
NACH mandate is also a form of standing instruction or authorisation that consumers can give their banks to debit funds from or credit funds to their account.
The Reserve Bank of India (RBI) had on May 22 announced an extension of the loan moratorium period by another three months until August 31. Earlier in March, the central bank had provided a moratorium on all term loans due between March 1 and May 31, 2020.The extension of moratorium and deferment of EMIs is expected to offer some respite to the borrowers amid the COVID-19 outbreak.