BOB Financial Solutions Ltd (BFSL), a wholly owned subsidiary of Bank of Baroda (BoB), has partnered with OneCard, to launch a co-branded mobile-first credit card.
The virtual credit card, powered by a mobile app, will be delivered in under three minutes and the metal card will be delivered in three to five days, BFSL and OneCard said in a joint statement.
The internationally valid credit card will be issued by BFSL and managed by OneCard on VISA’s Signature platform.
OneCard has been launched by FPL Technologies, a fintech start-up. It allows users to control all aspects of the card, including locking the card, enabling offline and online tractions, enabling domestic and international transactions, and paying the bill from an app.
The statement emphasised that the card comes with benefits such as lifetime validity, zero joining and annual fee, instant virtual card issuance, instant issuance of reward points, and easy redemption among others, within the app.
Shailendra Singh, MD & CEO, BFSL said, “BFSL is currently on its transformation journey, investing in technology, processes and people to ensure we offer best-in-class credit cards to our customers under the Bank of Baroda brand.
-Anushka SenguptaDebaditya Ghosh, a senior software developer at Deloitte, affirmed that he will not use BNPL again. Yes, the ‘Buy Now Pay Later’ credit option has its benefits, such as no hidden charges, but millennials like Ghosh said they are not able to control their expenditures.
“I don’t think I will use it again in the near future. The reason behind it being the purchase limit set by the e-commerce entity. For Amazon the limit is Rs 7,500-10,000. I purchased a product worth Rs 16,000, and I got tempted by the no interest rate policy, so I opted for the BNPL option. However, this wasn’t necessary and I wasn’t planning to spend the additional Rs 6,000. But temptations are quite high, which in turn makes you overspend. You start using it even for small purchases and, at the end, you are burdened by a lot of debt,” Ghosh said.
For those who are known to spend their earnings lavishly, and have fallen short in making full payment at the time of purchase, BNPL can be a great option, but it can increase their already-fragile financial burden.
“I always prefer buying using debit or credit because I can opt for deferment of high value purchases by staggered payments, when needed,” said Shreyashi Haldar, final year MBA student of NIBM Pune.
However, the less conservative millennials – the ones who are spend thrift – believe that BNPL is better than EMI, because of the 0% interest rate. BNPL companies offer an interest rate of 0-24%, depending on the transaction amount, and give the option of digital KYC.
“I purchased an item using Amazon’s BNPL facility, even though it had the EMI option. For EMI, I was being charged 13-15% interest, but with Amazon’s BNPL option, I could purchase the item at 0% interest,” said Asmita Sengupta, senior analyst at PWC India.
For EMIs, one has to pay a percent of interest, some charges, and some paperwork is also required.
Although millennials are in two minds about which is better – one thing is for sure – they believe that BNPL will not replace EMIs or credit cards, in line with what the industry believes. One of the main reasons for this is because the purchase limit is higher in EMIs, compared with BNPL.
“From what I have noticed, BNPL facility of e-commerce platforms are available for customers on that platform only. For example, I had purchased some items using Flipkart’s BNPL facility, but I could only buy it from Flipkart. But with my EMI card, I do not face this issue,” Haldar said.
Since BNPL is relatively new, BNPL is yet to garner a greater reach, like that of EMI and credit cards. Though millennials seem to be in two minds about this new and emerging credit option, the industry believes that the demand for it will likely rise in the future – especially after its robust performance this festive season.
Another option, if you are unable to make payments by the due date, is opting for a loan against your credit card. Various credit card companies offer pre-approved loans to customers, these can actually come in handy in this scenario. However, be mindful of the costs as the interest rate and other charges may be steeper. If you have multiple credit cards, compare interest rates and processing fees on each and go with the one that has least total cost for your preferred loan tenure.
Credit card spends jumped 60 per cent year-on-year (YoY) in September, helped by the onset of the festive season.
On a sequential basis, the growth slowed down to 3 per cent at Rs 80,500 crore, according to various research reports.
The festive season, opening up of the economy and rising consumer confidence is set to keep the credit card spends buoyant, experts say.
Kotak Mahindra Bank reported the highest growth (27% MoM) in September, followed by IndusInd Bank and ICICI Bank (13% each). Other major players reported growth in the +-4% range. On a two-year CAGR basis, spends for ICICI Bank grew 58%, IndusInd 33%, Kotak Mahindra Bank 29%. HDFC Bank and SBI Cards posted growth of 10–15% and Axis Bank and SCB 2–3%. While, Citi and Amex saw a decline of 8% and 26%, respectively. ICICI Bank surpassed SBI Cards to become the second-largest player in spends, with market share of 19.3% over 6MFY22.
Outstanding credit cards up 10.8%
The total number of outstanding credit cards in the system grew 10.8% YoY to 65 million in September 2021 – the highest in the past 11 months.
Among the major players, ICICI Bank reported strong growth of 26.1% YoY, followed by IndusInd Bank (15.6%), SBI Cards (14.3%). Foreign players such as American and Citi witnessed declines of 10% and 5% respectively. SBI Cards and ICICI Bank continued to perform strongly, resulting in a 59–218 bps YoY increase in market share to 19.3% and 18.0% respectively in September.
ICICI Bank added close to 2 million new cards in the past 10 months, taking its credit card base to 11.6 million as of September.
Despite a 247 bps year on year decline, HDFC Bank remained the largest player with a market share of 23.0%.
10.91 lakh card adds
Around 10.91 lakh new cards were added to the system in September with HDFC Bank being the largest acquirer at 2.44 lakh cards. ICICI Bank added 2.34 lakh, Axis Bank added 2.03 lakh, while SBI Cards added 1.75 lakh cards in September, while, Standard Chartered Bank, AMEX and Citi posted a decline of 13,000, 11,000 and 4,500, respectively, in the card base. IDFCF Bank also posted a strong performance with 39,000 new credit card additions in September.
Higher spends per card
Monthly spends per card for the industry increased to Rs 12400, from an average of Rs 10,700 over the past six months (higher v/s pre-Covid levels). This was attributable to an increase in the ticket size to Rs 4,300, the highest in the past several years.
Conversely, the number of transactions per card declined to 2.8 v/s 3.0 in August (3.1 in March). IndusInd and Kotak Mahindra Bank saw a higher increase of Rs 2,400 and Rs 2,200, respectively, followed by ICICI Bank with Rs 1,400.
IndusInd (Rs 9,700) and Amex (Rs 5,900) had the highest ticket sizes, followed by Kotak Mahindra Bank (Rs 5,100) and ICICI Bank (Rs4,900). All other players were in the range of Rs 3,900–Rs 4,300 – barring Citi and SCB, which were lower at Rs 3,000–3,200.
Mumbai, Budget carrier IndiGo and private sector lender Kotak Mahindra Bank on Monday announced a strategic partnership for a co-branded credit card, Ka-ching, under the 6E Rewards programme. Managed and operated by IndiGo, the Rewards Programme is linked to a co-branded card wherein members can earn rewards by using such card on IndiGo and other merchants and redeem them for availing the benefits.
Scheduled to be launched next month, the co-branded card will be available in two variants– 6E Rewards and 6E Rewards XL — offering exclusive travel benefits to the cardholders keen on domestic or international travel, IndiGo said in a release.
This collaboration will create value for customers in the form of a powerful product proposition offering a premium rewards experience to customers, it said.
Customer research reveals that travel has emerged as the most sought-after redemption category in terms of reward programmes. Customers prefer to receive travel-associated offers and benefits such as free flights while redeeming their reward points – a trend that is expected to accelerate as air travel reaches pre-pandemic levels, the airline said.
The credit card will allow customers to accrue accelerated 6E Rewards on their spends and redeem these points for airline tickets anytime with no blackout dates on redemptions.
Furthermore, customers will have access to other special benefits on IndiGo including complimentary air ticket, discounted convenience fee, priority check-in, choice of seat and a complimentary meal, the airline said.
“We are excited to indulge our customers with 6E Rewards on flight bookings, dining, entertainment and other spends that can be redeemed for IndiGo flight tickets and on other products and categories with our commitment to provide a great engagement to our members,” said William Boulter, Chief Commercial Officer, IndiGo, on the collaboration.
“We have immense conviction in our partner Kotak Mahindra Bank, with its vast reach to complement IndiGo’s network within the country, while offering unique experiences to our customers. It’s a perfect partnership as we believe in consistently enhancing our engagement to deliver great customer experience,” he said.
The cardholders will also be able to earn additional 6E Rewards on dining, shopping, transport, medical bill spends, utilities, fuel and other major categories with Feature Partners of 6E Rewards Programme, IndiGo said. PTI IAS ANU ANU
When buying a product online, we are often forced to store our credit or debit card details on the e-commerce platform. To ensure safety of this, the Reserve Bank of India issued guidelines last month, allowing card-on-file tokenisation.
Here’s what you need to know about the upcoming advancement in India’s digital payments system:
What is tokenisation?
As per guidelines, tokenisation is when credit or debit card details can be replaced with an alternate code, called “token”, which can be generated by the holder to make payments without entering their account details.
This devaluation of card details reduces risk and vulnerability of sensitive data, thereby reducing the chances of fraud arising from sharing card details.
Furthermore, if the customer wants to convert its token back to their actual card details, they can do so. This process is known as de-tokenisation.
What is a token, and how can it be used?
The 16-character “token” generated is free-of-cost, and can be used to perform contactless card transactions at point-of-sale (PoS) terminals, QR code payments, and now for card-on-file (CoF) transactions.
A customer can make a CoF transaction, after authorising a token to their merchant. The merchant can store the token, and use that to bill the customer’s products. Merchants here can be refered to e-commerce companies, airlines and supermarket chains.
The RBI has directed merchants not to store customers’ card details in their systems from January 1, 2022.
How do you generate a token?
The cardholder can generate a token by first requesting for a token on the app provided by the token requestor – the entity that accepts request from the customer for tokenisation of a card. Then, the company will pass the request on to the card network to issue a token. The card network, after seeking consent of the card issuer, will issue a token, which will have a combination of the card, the token requestor, and the device.
This process can be done through mobile phones or tablets for all use cases and channels like contactless card transactions, payments through QR codes and apps.
Tokens are generated by payment companies, which act like Token Service Providers (TSPs). They will provide tokens to mobile payment or e-commerce platforms so that the token can be used during transactions.
If a customer enters their card details in a virtual wallet like Google Pay, these platforms ask one of these TSPs for a token. Only after the TSPs get the go-ahead from the customer’s bank, a code is generated and sent to the user’s device. Once the token has been generated, it remains linked to the device and cannot be replaced. Consequently, each time a customer uses their device to make a payment, the payments platform can authorise the transaction by simply sharing the token.
How can you register for tokenisation, and is it mandatory?
The ability to tokenise and de-tokenise card data will be with the same TSP, and if a customer wishes to register their card for tokenisation, they will have to first give their consent through Additional Factor of Authentication (AFA), RBI says. Tokenisation is not mandatory, and the customer will be given a choice of selecting the use case and setting-up of limits. The stakeholders involved in a tokenised card transaction are the merchant, the merchant’s acquirer, card network, token requestor, issuer and customer.
ICICI Bank has overtaken SBI in credit card spends in August taking the number two spot after HDFC Bank. According to RBI data, ICICI Bank had a market share of 19.6% in August 2020 up from 15.8% in August 2020. SBI Card’s market share in spends, slipped to 18.7% in August 2021 from 20% in the previous year.
In absolute terms, total spending through credit cards in August 2021 was Rs 77,733 crore, up 54% from Rs 50,319 crore in August 2020. The overall number of cards in force has increased from 5.8 crore to 6.4 crore in the same period.
“Looking at total spends, since November 2020, ICICI has gained around 510 basis points market share, while HDFC Bank and SBI cards have lost around 285bps and 90bps market share, respectively. ICICI Bank’s total spends for July 2021 was equal to that of SBI cards despite ICICI Bank’s market share (based on outstanding cards) being lower than that of SBI Cards. We believe, ICICI’s co-branded card with Amazon (1.6 millon as of March 2021), which forms more than 50% of incremental card additions, has helped it to scale up its credit card business in a significant way,” said Suresh Ganapathy, an analyst with Macquarie research.
To boost credit card spending, HDFC Bank on Tuesday launched its Festive Treats 3.0 campaign, which will provide offers on cards, loans and EMIs. The bank has partnered with over 10,000 merchants across 100 locations as it expects customers to return to offline shopping following a dip in Covid cases and increased pace of vaccinations. “This year we have come out with more offline offers including hyperlocal merchants. We will use our ATM platform to inform customers about the offers around their location,” said Parag Rao, group head (payments, consumer finance, digital banking and IT).
HDFC Bank continues to be the market leader with 26.5% of total credit card spending in India. However, the bank’s share has fallen from August 2021, when it accounted for 28.7% of the total spend. Sequentially, HDFC Bank had seen a dip in credit cards in force as the RBI ban was still in force for most of the month. Since the ban was lifted the bank had added four lakh credit cards to its base of 1.47 crore cards as of August 2021.
The biggest loser in terms of share of spending is Citibank, which led the ranking in terms of card spend for many years. The multinational, which had a 7.8% share of spends in 2020 now accounts for 4.9% of spending. IDFC First Bank, a relatively late entrant, has managed to make a dent by increasing its share of card spend to over 1%. American Express is the only multinational bank to grow its share of spending from a year-ago period. However, the US issuer also faces an embargo on issuing new cards until it complies with data localization norms, which is likely to hit growth.
Cardholders might witness standing instructions for the payment of their credit card, crash from next month. Instructions may include the likes of content platforms, edtech firms and online ad payments. With the deadline less than a week away, some merchants are yet to be in compliance with RBI’s new requirement of additional factor authentication (OTP) for repetitive payments.
As per a TOI report, about 75% banks have set up the technology required to meet RBI’s directive. Although, some banks are still in the wait-and-see mode.
Banks are intimating customers that some transactions may fail.
“Effective October 1, 2021, the bank will not approve any standing instruction (e-mandate on cards for recurring transacions) given at merchant website/app on HDFC Bank credit/debit card, unless it is as per RBI-compliant process,” the banks are already writing to the customers.
Banks are recommending the user to either pay on biller’s website using OTP or use the bill-pay option for utilities.
A dozen banks, according to Razorpay, have put in place the technology to alert the customer a day in advance in the case of repeat payments while providing them with a link to discontinue the mandate, mentions the same TOI report.
This move by RBI can take growth in recurring payment mandates off the charts even though there might be disruptions in the short term, said Shashank Kumar, Razorpay chief technology officer and co-founder.
He adds that this directive caters to two problems. Discontinuing standing instruction to a merchant was a task earlier while some asked for a letter by post asking for the discontinuation.
Moreover, credit cards were mainly used for recurring payments while debit cards weren’t as much in use.
Eventually, international mandates will operate uninterrupted as neither banks nor the RBI has jurisdiction over international billers, even after October 1.
The inclusion of 900 million existing debit cards could increase Indian markets multifold, said Kumar.
RBI has increased consumer confidence by allowing them to stop payments whenever they want, he added.
Online education and entertainment could become interesting, he said, as it increases affordability of this service by allowing them to have a monthly debit model instead of a recover annual fees.
RBI, additionally, has capped debits at Rs 5,000 per month which indicates that billers would need to increase the frequency to enable auto-debit.
From tomorrow, your standing instructions for bill payments to your bank won’t be honoured, till the bank develops an alternate system.
A huge number of credit and debit card users set auto payment instructions for utility services ranging from electricity and gas and subscription services for music, movies and other media. The new rules may lead to lead to chaos for millions of users.
Dashing messages
Banks are sending communications to customers saying that they will not process the recurring payments and customers will have to make payments directly to merchants.
“Attention! From 1st Oct’21, as per RBI guidelines on e-Mandate on cards, we will decline Non Compliant recurring txn at Merchant Web/App on your Credit/Debit Card. Alternate Solution – Retry regular payment on Merchant Web/App authenticated via OTP or Pay via AutoPay in BillPay on our NetBanking for your Electricity /Water/Gas/ Landline/Postpaid mobile/Broadband/Insurance billers,” said a message to customers by HDFC Bank.
Banks and payment aggregators are rushing to meet the October 1 deadline for implementing a new system for standing instructions for recurring online transactions as RBI may not extend it.
“In compliance with the regulatory requirements, we are currently building a solution to seamlessly manage all your domestic standing instructions for recurring payments. This solution will be available soon for you. Starting October 1, any existing standing instruction for domestic and international recurring transactions on your card account will not be processed. We request you to make these payments directly to the service providers to avoid any interruptions,” American Express said in a recent message to customers.
How does the new system work?
Under the proposed system, as a risk mitigating and customer facilitation measure, the card-issuing bank will have to send a pre-transaction notification to the cardholder, at least 24 hours before the actual charge or debit to the card. While registering e-mandate on the card, the cardholder shall be given the facility to choose a mode among available options (SMS, email, etc.) for receiving the pre-transaction notification from the issuer. On receipt of the pre-transaction notification, the cardholder shall have the facility to opt-out of the particular transaction or the e-mandate. For transactions above Rs 5,000, banks will also be required to send one time passwords to customers. What is a standing instruction?
A standing instruction is a service offered to customers of a bank, wherein regular transactions that the customer wants to make are processed as a matter of course instead of initiating specific transactions each time.
This service relates to transactions like renewing subscription to OTT platforms, newspapers and magazines, and utility bill payments.
The issue
Large lenders and payment entities including State Bank of India, ICICI, Citi, HDFC, Axis, HSBC, Visa and Mastercard had asked the Reserve Bank of India (RBI) to postpone the deadline for putting in place a new system to alert customers on ‘standing instruction’ transactions.
The banks were asked to set up the system by March 31, 2021.
The lenders also wanted RBI to exclude transactions against pre-existing standing instructions and those with international merchants from the new conditions for e-mandates on cards for recurring transactions.
MUMBAI: Some cardholders might see standing instructions for payment on their credit card fail from next month. These could be for subscriptions with online content platforms, edtech companies or standing instructions for online advertisement payments. Some of these merchants are yet to comply with RBI’s new requirement of additional factor authentication (OTP) for recurring payments through cards though the deadline is less than a week away.
According to sources, around 75% of the banks have put in place the technology to meet RBI’s directive. However, there are some banks and merchants who are still in wait-and-watch mode. Banks are writing to customers, warning that some transactions may fail: “Effective October 1, 2021, the bank will not approve any standing instruction (e-mandate on cards for recurring transactions) given at merchant website/app on HDFC Bank credit/debit card, unless it is as per RBI-compliant process.” The bank has recommended that customers use its bill-pay option for utilities or pay on the biller’s website using OTP.
According to Razorpay, which processes close to a third of all recurring payment transactions, a dozen banks have already put in place the new setup where even for repeat payments the bank will alert the customer a day in advance and also provide them with a link to discontinue the mandate. “In the short term, there may be some disruption but, in the long term, this move by the RBI can take growth in recurring payment mandates off the charts,” said Razorpay chief technology officer and co-founder Shashank Kumar.
Kumar says the RBI directive addresses two key issues. Earlier, discontinuing a standing instruction to a merchant could be extremely cumbersome with some asking for a letter to be sent by post asking to discontinue the subscription. Second, debit cards were a grey area and recurring payments were done largely in credit cards. Incidentally, even after October 1, international mandates will continue as neither banks nor the RBI has jurisdiction over international billers.
“There are 900 million debit cards in India and their inclusion could increase the market multifold,” said Kumar. According to Kumar, by empowering customers to stop the payments at any time, the RBI has increased the confidence level. This could also make online education or entertainment more affordable as the availability of this facility will encourage providers to have a monthly debit model rather than recover annual fees.
Besides requiring banks to alert customers, the RBI has capped automatic debits at Rs 5,000 per month. This would mean that billers, like insurance companies, with large instalments, would need to increase the frequency to enable auto-debit. In the case of utilities, many online payers use their bank’s bill payment platform for standing instructions and will have no impact.
To help those borrowers who have been finding it difficult to pay back loans, the Reserve Bank of India (RBI) had lent a helping hand in the form of loan restructuring.
In 2020, the RBI had announced a loan restructuring program. And then in May 2021, due to the second wave of Covid-19, it announced a second resolution framework for many borrowers including individual borrowers.
Various banks have announced the terms and conditions for availing their loan restructuring 2.0.
Here is a look at the FAQs of HDFC Bank‘s loan restructuring policy 2.0 as per the lender’s website.
What is the restructuring 2.0 scheme approved by RBI? RBI has provided a framework to banks & lending institutions for implementation of resolution plans for addressing the economic fallout due to the COVID-19 pandemic which has led to significant financial stress for customers. Basis the framework and regulatory guidelines, your bank has framed its policy for the restructuring of the loan/s of individuals and entities that have been impacted due to the COVID-19 pandemic.
Who is eligible for restructuring? a) Individuals and Entities that are classified as Standard with the bank as on April 1, 2021. b) The customer has to be impacted financially by COVID-19 pandemic in the form of reduction/ loss of income or cash flows. c) Only those accounts, which are on the bank’s book as on April 1, 2021 will be eligible. c) The reduction of income and its financial impact on the customer will be reviewed by the bank basis the documents / information provided which does show the drop in cash flow due to the COVID-19 impact. The bank will assess the viability of the customer to pay the restructured EMIs basis the documents provided, before granting the restructuring. Apart from the viability calculations, the repayment track record of the customer, credit bureau records, and the responses given by the customer while availing moratorium earlier will also be factored in the restructuring decision.
Which are the products covered under the regulatory restructuring relief package. * Credit Card receivables* Auto Loans and Two-wheeler Loans * Personal Loans (both for personal use and for business / commercial purposes)* Personal Loans to professionals * Education Loans* Loans given for creation/ enhancement of immovable assets (e.g., housing loans)* MSME loans with Udyam certificate (The borrower should be classified as a MSME on March 31, 2021 in terms of Gazette Notification S.O. 2119 (E) dated June 26, 2020)
What type of loans are not eligible for restructuring? Loans to the following entities/individuals are not eligible for restructuring: -* individuals/entities for agricultural purposes and classified as agricultural loans by the bank * agricultural credit societies * financial service providers* Central, State and local government bodies * HDFC Bank employees* Exposures to housing finance companies which have already been rescheduled* Loans which have been already restructured once
How do I avail the restructuring benefit on my loan? You may visit the bank’s website for the application link, fill the application form and submit the relevant details.Login to the application form with your Loan Account Number / Credit Card Number / Email ID registered with the bank and the OTP sent on your registered mobile number/ Email. If you have changed your number, please give a written request for change in number at the nearest branch, and apply post the number has changed on system.Alternatively, you may contact your Relationship Manager (RM).
Can I apply multiple times? No. You can apply for restructuring only once.
What are the restructuring options that are available to me? The balance tenure of the loan can be extended by a further period of maximum 24 months, including the moratorium period at the bank’s discretion to ease your monthly EMI repayment burden.
Do I need to submit any documents to avail of the restructuring benefit? The bank will require you to submit documents giving details about the current status of your employment or business. For salaried borrowers:* Salary slips for the month of March 2021 and latest salary slip for last 2 months* A declaration of estimated salary/income immediately after the end of the desired restructuring period (Maximum 24 months).* Letter of discharge from job (in case of job loss)* Bank account statements of the account where salary is credited in case of salaried employees from Oct 2020 to date For self-employed borrowers/ entities:* Current / CC account bank statement from 1st April 2020 till date * GST returns Oct-2020 till date * Income tax returns for FY-19 & FY-20 and FY-21 (if filed) * Profit and loss statement / Balance sheet for the last 2 years* Udyam certificate * Declaration by self-employed professionals/ businessmen declaring that their business is affected by Covid-19.Please do keep these documents ready before you apply on the link, as incomplete applications are unlikely to be processed.
Will opting for the restructuring package have an impact on my credit bureau report? As per regulatory guidelines, your loan/credit facility will be reported to the credit bureau as “Restructured”.
I hold multiple loans/credit facilities with the bank. Do I have to apply separately for each of these loans? The restructuring application form shall have the option to apply for one or all the loans by a single application on the bank’s website. The bank shall assess the application on regulatory guidelines, on the COVID-19 impact and the viability of the repayment plan before decisioning the same.
I have a credit card with EMI plans within my credit limit. Can I opt for restructuring of only the card outstanding and not the EMI plans? The entire credit card balance including the loans within the credit limit will be restructured and converted into a separate loan account.
I have a Jumbo Loan facility on my credit card. Is it mandatory to convert the Jumbo Loan if I choose to restructure the credit card? You may choose to restructure either the card balance or the Jumbo Loan or both the facilities.
Will my credit card be blocked or deactivated if I avail of the restructuring scheme? Your credit card will be deactivated without any further notice once the restructuring is approved for any of the loans / credit cards you have with the bank. The bank may choose to reinstate fresh limits at its discretion on the card after 12 months basis the repayment behaviour on the loan EMIs.
Is there a minimum outstanding requirement for availing the restructuring facility?v Minimum outstanding balance required to convert the card/loan outstanding is Rs. 25,000.
I am self-employed/ entity having my small-scale unit. Am I eligible for relief? Self-employed individuals/entities are eligible for relief for both under the MSME category as well as the Non-MSME category. The Bank would request its self-employed customers to register themselves as MSME through the Udyam portal of the Government wherever applicable. Udyam portal link: https://udyamregistration.gov.in/Government-of-India/Ministry-of-MSME/online-registration.htm
Can I apply for restructuring now as I was not able to apply for moratorium before? The scheme for restructuring is open to all customers of the bank irrespective of the moratorium applied status subject to the borrower meeting the regulatory guidelines of restructuring.
I have already availed of restructuring. Can I avail this once again? If you have already availed restructuring, you are not eligible for restructuring under this scheme. However if you have not availed of the full benefit of 24 month tenor extension in the earlier scheme which ended on 31st Dec, the bank can evaluate and provide relief to the extent of overall tenor extension of 24 months.
My loan was taken along with a co-borrower/s. Will all the co-borrowers of the original Loan agreement be required to sign the revised restructuring agreement? As per regulatory and legal requirements, all borrowers/co-borrowers of the original loan need to agree and sign on any changes in the loan structure including the restructuring agreement.
What is the last date of making applications through the portal. The link on the portal will be live till 20th September 2021 for customers with single loan or overall exposure less than 25 Lacs.
How much time will it take for me to know the status of the restructuring application. The bank will process and communicate the status of the application to the customers in 10 to 14 working days.
How will I get the approval and communication for acceptance? The bank will communicate the status of the restructuring request vide text message or email on the registered phone number or email address.
Will I need to do further documentation for restructuring? For all loans, you would have to sign the restructuring agreement post approval for the bank to effect restructuring. If you are sole borrower, bank will provide digital options for signing the agreements. In case there are two or more applicants on the loan structure, then all applicants will be required to accept the terms by putting physical signatures on the application and revised agreement, and this agreement will need to be submitted at the nearest customer service desk. The customer will get a copy of the revised terms and amort schedule on their registered mail id / by regular post.
