Karnataka State Co-operative Urban Banks Federation Ltd.

Questions regarding regulatory package of RBI on account of COVID-19

and other issues

Sr Questions Answers
No
1 What are the working As per RBI guidelines, Banks should normally
timing for banks in India function for public transactions at least for 4 hours
as per RBI guidelines? on week days. After computerisation of branches
Is there any change due the time taken for closing the business has reduced
to COVid-19 ? There are bank holidays on Second and forth
Saturday. Hence the banks are providing more than
4 hours as working hours (cash hours).
Accordingly, public sector banks provide 6 hours
and private sector banks provide more than 6
hours as working hours. There is no change in RBI
guidelines on account of COVID-19. The UCB’s
board can decide banking hours taking into account
local circumstance keeping in view RBI guidelines.
2 There are messages It is verified from one of the controlling offices of
showing a Notification Syndicate Bank. They said that they are not aware
issued by Syndicate of any such notification. Please note that, as per
Bank that shows only RBI guideline, rural branches have flexibility in
three alternate days for fixing their business days/hours.
bank working. Can
UCBs adopt the same.?
3 Is there any change in There is no change in date on annual closing. It
date of bank’s annual continues to be March 31st. For RBI annual closing
closing? used to be on June 30, this will change to March
31st from next year.
4 Are the regulatory relief The RBI has given moratorium of 3 months for
as per RBI circular payment of loan instalments due from March 1to
dated March 27, 2020 May 31, 2020. Please note that there is no waiver
be offered to all of interest on those differed instalments.
customers irrespective Compounding interest will be charged on unpaid
of their cash flow? instalments. If the tenor of the loan is extended,
additional interest payable will be substantial.
Keeping this in mind, banks can take a view to offer
the relief. If there is no disruption in cash flow,-
example- salaried employees, the banks may make
it optional for such borrowers, ie. borrowers have to
submit request for such relief.
5 Is there any deferment No. The deferment of three months is given for
for payment of loan amounts due between March 01 and May 31, 2020.
amount due before Therefore, no relief for banks in classifying the
March 01, 2020? account as NPA as on March 31, 2020.
6 Is the Federation Indian Banks Association has already made one
making one more more appeal to RBI requesting standstill in asset
appeal to RBI regarding classification. The RBI has replied that “if a
NPA classification? borrower has been in default even before March
01,2020, such default cannot be as a result of the
economic fallout of the pandemic”. Hence, RBI
rejected their demand for deferment of NPA
calcification. In view of this, writing one more letter
by Federation may nor serve any purpose.