Moratorium

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Is there any provision for banks to grant a short moratorium or temporary payment relief in situations involving a family member’s critical medical treatment, sudden medical expenses, and temporary loss of income? I recently faced a severe medical emergency in my family, followed by a bereavement, which caused unavoidable financial strain. During such genuine hardship, can a customer request a two-month moratorium or restructuring from their bank, and are banks required to consider it under any RBI guidelines or fair-practice norms? I want to understand if this type of relief is possible across banks, and what the correct process is for requesting it.

Dear Mr Arshak Zaan PK Though the Reserve Bank of India has not issued any specific guidelines for such type of moratorium, it has directed banks to chalk out own policy approved by the Board of Directors. You may talk to the branch manager and properly explain to him the present hardship with relevant proof. If you are an old customer of the bank and if your credit score is good, the manager may, at his own discretion, grant a short term moratorium. In that case you need to understand all the terms and conditions before signing any papers.

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