FAQs on COVID-19 –REGULATORY PACKAGE
Reserve Bank of India has announced relief measures to borrowers, on account of outbreak of pandemic COVID-
19, vide Circular No. DOR. No. BP. BC. 47 / 21. 04. 048/ 2019-20 dated 27.03.2020. In line with the same Bank has
also issued detailed guidelines.
For further clarifications, following are some of the Frequently Asked Questions (FAQs) in respect of the relief
measures:
1. What are the relief measures provided in the given package?
There are three kinds of relief measures provided in the package:
i. In case of Term Loans, moratorium on instalment and/or interest falling due between March1,
2020 and May 31, 2020.
ii. In case of Working Capital facilities (Cash Credit/Overdraft/Working Capital Demand Loan/Line of
Credit), moratorium on interest applied between March 1, 2020 and May 31, 2020, and
iii. Measures on easing of working capital financing by way of recalculating the Drawing Power by
reducing the margin and/or by reassessing the working capital cycle.
2. What do I need to do to avail this relief?
You need to give your request in any of the following mode:
i. Write a mail requesting the relief from your authorised mail ID to payeasy@ bandhanbank.com.
Content of Email is mentioned below.
ii. Contact your nearest Branch and submit your request.
iii. Contact your Relationship Officer/Relationship Manager and submit the request.
Email Content:
Subject: Your Loan Account Number & Name
In the E-mail body please mention the following details
Name of the borrower:
Loan account number:
Loan Type:
“I am willing to opt in the instalment and interest moratorium facility offered by the Bank. I shall pay all
the accumulated interest at the end of the moratorium. hence kindly consider my request and do the
needful.”
BANDHAN BANK LIMITED 1
In similar way you can write letter also. Please mention the hardship you are facing and the relief
measure you are seeking.
3. Which loans are covered in this package?
All types of Term loans and Fund based working capital facilities sanctioned and disbursed by the Bank
and outstanding as on March 01, 2020 are eligible for this package.
This includes all Micro Banking Loans, all retail loans (e.g. Personal Loan, Housing Loan, two wheeler loans
etc.), agricultural loan, SME loans and all such Term Loans and Working Capital facilities.
The Bank however will grant moratorium to deserving borrowers, whose income or cash flow has been
affected due to the impact of Covid-19.
4. What is moratorium? Is it a waiver?
Moratorium is temporary deferment of payment of interest and/or principal instalments. It is not a
waiver.
By availing moratorium, you can defer the payment of interest and / or principle on the loans availed by
you. This would also attract additional interest for the period of moratorium.
5. For what period can the moratorium be granted?
Moratorium may be granted up to a period of three months for interest and/or instalment falling due
between Mar 01 and May 31, 2020. The resultant extension of the loan tenor can be longer than the
moratorium period depending on residual tenor of the loan.
6. Will higher interest be charged on my loan for availing moratorium? Is there any
processing fee applicable for moratorium?
No. The Bank shall be charging the same interest rate as per the normal rate of the loan. There will be no
processing fees charged for the loan.
7. Is the moratorium on principal or interest or both? What about EMI?
Moratorium is for Principal or Interest or for both as per your request and as shall be decided by the Bank.
Moratorium is applicable to all types of loan payments like EMI, bullet repayments, principal instalments
and interest dues.
BANDHAN BANK LIMITED 2
8. What will happen to my Loan, on account of the moratorium?
Due to the moratorium tenor of the loan may get extended and may lead to higher interest cost and
increase in number of EMIs depending on the residual tenor of the loan.
9. Will the interest accrue during the moratorium period? How do I pay it?
Yes, the interest will accrue during the moratorium period. The same has to be paid at the end of the
moratorium period.
10. What will happen if I have already funded by Current/Savings/ Operating account with
the repayment amount?
In case operative Bandhan Bank account / loan account is funded with the instalment amount, the system
shall appropriate the funds towards servicing of EMI / repayment amount and moratorium will not be
applied
11. What will happen if I have paid instalment/ interest of March but subsequently I am
facing problem and I would like to opt for it?
If you have already paid the instalments or serviced the interest for March 2020, you can avail
moratorium for instalments falling due in April and May 2020.
12. What if I am not interested to avail the relief/moratorium?
In case you are not interested to avail the relief/moratorium, Bank will continue to act on the repayment
instructions and loan account will be serviced in usual manner. You need to ensure that your linked
Current or Savings account is appropriately funded towards repayment amount.
13. Will there be late payment charges/ default interest/ additional interest for the
deferred instalments during the moratorium period?
No late payment charges/ default interest/ additional interest shall be levied during the moratorium
period.
14. Will my Credit Bureau Score shall be affected because of the moratorium/deferment?
The moratorium will not be treated as default for the purposes of supervisory reporting and reporting to
Credit Information Companies (CICs)/credit bureau by the Bank. Hence, there will be no adverse impact
on the credit history of the borrowers.
BANDHAN BANK LIMITED 3
However, any delay in payments of dues/ outstanding amounts payable after the expiry of the
Moratorium for customers(s)/ borrower(s) who had availed of the Moratorium will qualify for the
purposes of reporting to Credit Information Companies (CICs)/credit bureau by the Bank.
15. What do I do if I want to avail other relief measures like re-calculation of drawing
power etc?
For this you have to come with specific request mentioning the type of hardship faced and the effects on
sales realisation, receivable realisation and on working capital cycle. Suitable approval/ decision shall be
provided after assessment of the same as per Bank’s guidelines. Bank may also ask you additional
information as shall be required to arrive at a decision.
16. What if I have availed credit facilities under Multiple Banking or Consortium banking
Arrangement?
In case you have availed facilities under Multiple Banking or Consortium Banking Arrangement, it is
desirous that you should have applied similar relief to other lenders.
The reassessment of limits will need to be harmonized with the assessment of the Lead Bank of the
Consortium.
17. What will happen to the accounts which are delinquent/ in default/overdue on or
before 29th February 2020?
Overdue accounts as on 29th February 2020 are eligible for Moratorium subject to clearance the overdue
before availing the moratorium. Otherwise, an account which is overdue as of February end will still
continue to age and overdue days’ count will continue as per IRAC norm until the overdue as of February
end is paid in full. For e.g. if an account is overdue by 60 days as of February end and the overdue amount
is Rs. 10,000/-, it will turn NPA as of march end unless the entire overdue as of February end is not
serviced.
So it is advisable that instalments/other amount overdue on or before 29th February 2020 in any of the
loan account to be paid, in order to avoid down-gradation of account and slippage in credit rating.
Accounts which are NPA as of 29th February 2020 end will not be considered for moratorium
18. I have availed moratorium. However, during moratorium, I am willing to pay some
amount. Can I pay this?
Yes. Even if you have availed the moratorium and willing to pay in between, you can make the payment.
The same would be considered as prepayment in the loan account. However, no pre-payment charge
shall be there for amount deposited during moratorium. For making such payments kindly contact the
nearest Branches/Retail Asset Centre.
BANDHAN BANK LIMITED 4
19. Till what date can I opt for the moratorium period/ place a request for the moratorium
period?
Request for moratorium can be placed up to 10 days before the due date of instalment/interest i.e. up to
20th April for dues of April 2020 and May 2020 and up to 21st May for dues of May 2020.
20. Will all these measures of RBI be treated as “restructuring”? What about the
provisions applicable?
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.
21. Which are the other conditions that may make my account ineligible for the Package:
Following conditions shall make an account ineligible for the package:
It is an NPA account as on 29.02.2020.
The borrower/account is under IBC proceedings.
The borrower is classified as wilful defaulter/ RFA/ Fraud by Bandhan Bank or other Banks
BANDHAN BANK LIMITED 5
