SBI introduces OTS 2019 for EMI moratorium

On the backdrop of current disruption in the market and 21 days lockdown till April 14, 2020, State Bank of India (SBI) has announced the extension of the timeline for payment of settlement amount by 3 months. Now, SBI customers onboarded under settlement scheme
SBI OTS 2019, Rinn Samadhan 19-20 and General SBI compromise settlement scheme can meet payment obligation by June 30, 2020. This move of the SBI is another step after the EMI moratorium offer that would go down well among the SBI customers facing a liquidity crisis in the Coronavirus lockdown.

The SBI informed about the decision in a written press statement citing, "Under One Time Settlement (OTS) 2019, the extension will be available only to those customers where the first two installments of 5 per cent or 15% per cent and 20% per cent or 25 per cent have been received within stipulated time of 30 days and 60 days respectively. The balance OTS amount can be paid by June 30, 2020. Bank will not charge any interest on the amount for this extended period."

Similarly, under Rinn Samadhan, the timeline for receipt of acceptance of OTS proposal along with upfront payment from borrowers has been extended up to June 30, 2020 from the current March 31, 2020, and up to September 30, 2020 for recovery of entire OTS amount. This will provide an extended opportunity to borrowers who are unable to visit branches owing to the lockdown.

Payment obligations for borrowers with outstanding as on March 01, 2020 under General Compromise category has been extended by 3 months from the respective dates, without charging any interest for an additional period.