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Kotak Mahindra Bank moratorium on credit card dues: What are the terms and conditions

If you have a credit card from Kotak Mahindra Bank, here are some of the details of its three-month moratorium facility.

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Last Updated: Apr 07, 2020, 01.52 PM IST
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On March 27, the Reserve Bank of India (RBI) said that all lending institutions, including banks and housing finance companies, will have to give its borrowers a three-month moratorium on term loans. RBI also stated that the moratorium will apply to credit card dues as well.

If you have a credit card from Kotak Mahindra Bank, here are some of the details of its three-month moratorium facility. Details are as per Kotak Mahindra Bank's website.

  1. The Bank will offer to all borrowers who wish to avail of the facility of moratorium (for term loan instalments and credit card dues falling due between March 1, 2020 and May 31, 2020) and / or deferment of interest for the months of March to May 2020 to all borrowers who availed working capital facilities.
  2. The Bank would be charging the interest, at the original contracted rate, for the moratorium period on the outstanding amount of loan to all those who avail the relief as provided in the RBI circular. This interest has to be paid by the customers as prescribed in this policy.
  3. Credit card customers will be given an option to avail of relief under the RBI circular will be sent instructions along with their first statement falling due on or after April 1, 2020. Customers who do not pay their total amount due, as payable in the months of March, April, May would be automatically enrolled for the Moratorium. Customers desirous of availing the relief should provide the relevant details within seven days (or extended date as may be permitted by the Bank) from their first due date falling after April 1, 2020.
  4. The moratorium/deferment granted to borrowers will not qualify as default on the part of borrowers for the purposes of supervisory reporting and reporting to credit information companies (CICs).

Also Read

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RBI extends moratorium on credit card dues by 3 months: Here's how it will impact you

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