COVID-19 Regulatory Package
Whether it’s your family’s well-being, work or your peace of mind - there’s a lot to deal with and we understand that. Be assured, we are there for you as we walk through this together. Your financial health is as important to us and we want to ensure that you hit zero roadblocks in your journey with us. We want to make it easy for you to fulfil your commitments for the 3 months (Mar’20 to May’20), in line with RBI’s COVID-19 moratorium package.
The Reserve Bank of India (RBI) announced various regulatory measures to mitigate debt servicing burden on borrowers in view of the disruptions owing to the current situation related to Covid-19. Reference is drawn to circular no. RBI/2019-20/ 186 DOR.No.BP.BC.47/21.04.048/2019-20 “COVID-19 – Regulatory Package” dated March 27, 2020 (https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11835&Mode=0).
In line with RBI’s Covid-19 related relief package, DBS Bank India Limited (DBIL) will be extending its support to eligible Consumer Bank Group (CBG) and Institutional Bank Group (IBG) Customers in these challenging times.
Click on the below links to know more:
Treasures customers: https://go.dbs.com/2JBPVqf
digibank customers: https://go.dbs.com/2UHy1sp
1) Rescheduling of Payment - Principal and / or Interest:
- For Term Loans facilities, extending a choice to customers of availing moratorium of three months on payment of all instalments (comprising of (i) principal and/or interest components (ii) bullet repayments and (iii) Equated Monthly instalments) falling due between March 1, 2020 and May 31, 2020 (“the moratorium period”).
The tenor of the Term Loan will get extended appropriately to enable the deferred instalments to be collected at the end of the tenor.
- For Working Capital facility in the form of Cash Credit / Overdraft facility (“CC / OD”), extending a choice to the customers for opting deferment of recovery of interest payments falling between March 1, 2020 to May 31, 2020 (“the moratorium period”).
a) Applicable to all eligible credit facilities granted and outstanding with DBIL as on February 29, 2020.
Instalments of term loans or working capital facilities and interest already due before 1 March 2020, will be outside the purview of this relief measurement; hence, no relief under this policy will be provided to customers on such overdues. This is not applicable to loans disbursed in March 2020 and loan disbursements to be made in April 2020 and thereafter.
b)The customer needs to submit a written application requesting for exercising their choice towards availing the moratorium and/ or Interest deferment. To address the hardships for the customers in the prevailing lockdown condition, an application made via registered e-mail or digital mode will be acceptable & should be addressed to the to the Bank's Relationship Manager.
Customers are requested to be conversant with the below terms before exercising the option:
A) Interest shall continue to accrue on the outstanding portion of the term loans and working capital facilities during the moratorium period.
B) The Bank will not charge any penalty on account of scheduling of Term loans or working capital under this policy.
C) For term loans, the accumulated accured interest may be capitalised and amortized over the revised tenor or recovered separately with a time lag of 3 months. The Bank will intimate to its borrowers accordingly.
D) For CC/OD facilities, the accumulated accrued interest shall be recovered immediately after the completion of the moratorium period.
2) Easing of Working Capital financing:
Further for easing of Working Capital facilities, in appropriate cases at its sole discretion, at the specific request of borrowers, the Bank may reassess the working capital requirement factoring the Covid-19 impact on customer’s business. This will be for the same 3-month period referred to above and will be through reducing the margins for drawing power computation and/or by reassessing the working capital cycle. This relief shall be available in respect of all such changes effected up to May 31, 2020.