Private sector lender ICICI Bank has extended the moratorium on credit card dues. The announcement comes after the Reserve Bank of India extended moratorium on equated monthly instalments (EMIs) of loans by three months till August 31, 2020. Earlier, the apex bank had announced moratorium on equated monthly instalments (EMIs) of loans for period between March to May this year. Here's a look at how the extension of the moratorium will work for ICICI Bank credit card holders. (All details below are from the bank's website.)
When do I need to make the payment after the moratorium period is over?
The customer needs to pay as per their credit card statement generated after end of moratorium and its billing cycle payment due date. For eg. If the customer has opted for moratorium in June 2020, payment needs to be made for the July 2020 month statement that gets generated.
The amount mentioned in your statement would include:
I. All previous outstanding against which payment is not done
II. Principal amount on transactions done during moratorium period and interest levied on these transactions
III. Interest on Personal Loan on Credit Card (PLCC) and EMI transactions
If I avail of the moratorium facility, how will my EMIs be recovered after the period is over for Credit Card transactions? Is it single debit of all the EMIs put together or will my EMIs be debited monthly as usual?
As EMIs are billed in your regular Credit Card statement cycle, EMIs would continue to be billed in your statement as per the original amortisation schedule. For example, if your EMI was to be billed on June 15, and you have availed of the moratorium benefit on June 5, the EMIs would still be billed on June 15. The payment for these billed transactions will need to be done as per the payment due date of the statement generated after end of moratorium to avoid any penal late payment.
In case of non-payment of statement dues (which includes EMIs billed) by the respective payment due dates, interest charges will accrue at the standard interest rates (as per standard interest rate of the Credit Card variant as mentioned in the applicable terms and conditions).
I have opted in for availing the moratorium. I have set an auto debit on my Credit Card for payment. Will the auto debit facility be triggered during moratorium period?
Auto debit will not be triggered during the moratorium period if you have opted in for moratorium. Auto debit facility would be restored from the preceding month in which moratorium has ended at pre-moratorium configuration.
I have multiple Credit Cards of ICICI Bank. Can I opt for moratorium on only one of my cards?
Yes, moratorium will be applied to the card number which the customer chooses during the opting in/ selection process. Incase the customer needs moratorium on multiple cards, he/she needs to raise separate requests for each card.
Can I apply for moratorium of multiple months at a time?
No, your request for moratorium will be valid for a single month only. In case you want to extend the moratorium period; you will need to reapply for moratorium in the subsequent month.