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FREQUENTLY ASKED QUESTIONS (FAQS): COVID-19 RELIEF PACKAGE EXTENSION FOR YES BANK TERM LOANS/CASH CREDIT/OD

Q. What is the extended moratorium scheme recently announced by RBI?

The Reserve Bank of India (RBI) had issued COVID-19 – Regulatory Package notification, dated March 27, 2020. In accordance with the notification, YES BANK had offered a moratorium of up to three months in respect of all term loans on payment of all instalments (including principal and interest) falling due between March 01, 2020 and May 31, 2020, including interest deferment benefit available to cash credit or overdraft facility.

RBI has further extended the regulatory relief package by three months through a Circular dated May 23, 2020. RBI has permitted all Banks/financial institutions to extend the moratorium by another three months. In accordance with guidelines of regulatory package, YES BANK is offering extension of moratorium of up to three months in respect of all terms loans on payment of instalments (including principal and interest) falling due between June 01, 2020 to August 31, 2020, including interest deferment benefit available to cash credit or overdraft facility.

 

Q. Which loan products are eligible for moratorium?

Moratorium can be offered in respect of all term loans (including agricultural term loans, retail and crop loans) and working capital facilities for below payments falling due during the moratorium period.

(i) Principal and/or interest components;

(ii) Bullet repayments;

(iii) Equated Monthly Instalments or EMIs;

(iv) Credit Card dues

 

Q. If I had opted Moratorium 1.0 (for the period of March, 2020 to May, 2020), is it mandatory to apply for moratorium 2.0 (for the period June, 2020 to August, 2020) again to avail the benefit of moratorium?

Moratorium benefits shall be provided to all facilities such as term loans and working capital facilities (including CC or OD) during the extended moratorium period (June 1, 2020 to August 31, 2020) to all borrowers who had opted-in during the previous moratorium period (March 1, 2020 to May 31, 2020) as well as to those borrowers who were automatically opted-in on account of defaulting on the dues billed (instalments for term loans or interest for working capital facilities including CC or OD) during the period March 01, 2020 to May 31, 2020.

 

Q. I had opted in for Moratorium 1.0 (for the period of March, 2020 to May, 2020) and want to Opt out for Moratorium 2.0 (for the period June, 2020 to August, 2020). What is the process for opting out?

The Bank’s communication (email and SMS) to customers also includes a link to opt-out in addition to details pertaining to the extended moratorium. Customers desirous of doing so can click on the link to Opt out of the moratorium.

 

Q. I had not opted in for Moratorium 1.0 (for the period of March, 2020 to May, 2020) and want to Opt in for Moratorium 2.0 (for the period June, 2020 to August, 2020). What is the process for opting-in?

Borrower(s) who had not opted-in for moratorium benefit during the previous moratorium ending on May 31, 2020 and had honored the dues during the period March 01, 2020 to May 31, 2020, can opt-in for extended moratorium benefit i.e. June 01, 2020 to August 31, 2020 through the email and SMS link provided.

 

Q. In case I DO NOT opt for moratorium, but am unable to pay my instalment/interest during the moratorium period?

If you are unable to make payment as per the schedule, you will automatically be registered for the moratorium scheme. In this case, your repayment cycle will resume from the month of September, 2020. Revised schedule of loan repayment will be communicated to you.

 

Q. In case I opt in for moratorium, which instalments does the moratorium cover?

Moratorium covers all principal and interest amounts falling due in the months of June, July and August, 2020.

 

Q. If I avail this moratorium, is it that the Bank will not charge any interest during the moratorium period?

In line with RBI guidelines, the Bank will continue to charge or accrue interest during the period of moratorium. This interest accrued during the moratorium period shall need to be paid by the customer to the Bank at the end of the moratorium period. The Bank encourages the Borrower’s with adequate funds and cash flows to continue to pay the instalments to avoid additional interest and elongation of the tenure.

 

Q. My loan is overdue because the principal / interest for earlier months is unpaid. Will I get standstill benefit for my account so that it does not get classified as Non-performing account (NPA)?

The moratorium benefit for the principal and interest as per RBI guidelines is eligible for dues falling between March 01, 2020 and August 31, 2020. Ageing of all standard asset (non NPAs) overdues prior to March 01, 2020 will get standstill benefit in line with RBI guidelines for those borrowers/facilities that have been provided the moratorium benefit.

 

Q. How will my loan tenure be adjusted if I avail for the moratorium benefit?

For the retail loans under the Equated Monthly Instalments (EMI) structure, the tenure will be extended by the corresponding period for which the moratorium is availed e.g. if the EMIs for the months of March, 2020 to June, 2020 are paid, and the moratorium for the months of July and August, 2020 has been availed, then the loan tenure will be extended by corresponding period. However, there will be additional EMIs which will be payable on account of the impact of the deferred interest during the moratorium period.

For example, a customer with an EMI based loan having Principal outstanding of INR 15 lakh with a residual tenure of 15 years would need to pay an approximate additional interest of INR 1.01 lakh (assuming ROI of 8%) i.e. approximately 11 additional EMIs (which will include the three EMIs pertaining to the moratorium) due to the three months moratorium.

For non EMI based corporate loans, the repayment schedule for the term loan shall have a parallel shift of all instalments by an additional period of up to three months, in case the extended moratorium benefit is availed over and above the moratorium benefit that may have been availed during March 1, 2020 and May 31, 2020.

 

Q. Do I need to submit fresh Auto Debit / Post Dated Cheque’s / NACH mandates?

No, if you opt for the moratorium scheme, the residual tenure will increase to recover the accrued interest during moratorium period. However, in case the EMI or instalment amount increases or existing NACH mandate or PDC expires, then a fresh mandate or PDC will be required.

 

Q. When do I have to pay the interest that would have accrued during the moratorium period?

Term Loans – The accrued interest shall be payable after the completion of the moratorium period. The schedule of repayment of such interest shall be communicated by the Bank to the borrower.

CC or OD - No interest shall be debited to the customer account for CC or OD for opt-in customers. However, the interest accrual will continue and shall be converted on September 1, 2020 into a Fixed Interest Term Loan (FITL) payable on or before March 31, 2021 for which documentation will be executed with you. You may however choose to prepay the same without any prepayment charges.

 

Q. What if I make any repayment(s) during the moratorium period after availing the moratorium benefit?

In case you make any repayment(s) during the moratorium period after availing the moratorium benefit, then such repayments will be adjusted against any overdues or considered as advance payment for future dues.

 

Q. Will I be charged penal charges or penal interest for availing the moratorium benefit?

No, the Bank would not charge any penal charges or penal interest for availing the moratorium benefit during the moratorium period. The Bank only will accrue the interest as per the loan contract rate during this period. However, in case the borrower does not pay such accrued interest as and when the same becomes due, then penal charges or penal interest would be applicable.

 

Q. If I avail the moratorium, we understand as per RBI guidelines that interest will continue to accrue. Will this not lead to reduction of our available CC or OD limit as the interest will get debited into the utilised amount and therefore consume the limit?

Though the Bank will continue to accrue interest on CC or OD line during the moratorium period, it will not be debited to your CC or OD account till the end of the moratorium period. Therefore, you can continue to utilise your CC or OD line without any reduction on account of interest billed during the moratorium period.

 

Q. If I avail the moratorium, then will this have an impact on credit or bureau score?

In line with RBI guidelines, the moratorium on payments will not qualify as a default for the purposes of supervisory reporting and reporting to Credit Information Companies (CICs)/credit bureau by the Bank during the moratorium period. Hence, there will be no adverse impact on your credit or bureau score or asset classification during the moratorium period.

However, any delay in the payment of these dues after completion of the moratorium period under the revised schedule shall be reported to the Credit Information Companies (CICs) or credit bureau by the Bank and would thereby impact your credit score.

 

Q. If I have taken loans through Self Help Groups/Joint Liability Groups, do I need to submit specific request for availing the moratorium benefit?

Specific request is not required for the loans availed through Self Help Groups or Joint Liability Groups. For such borrowers, the moratorium scheme shall be extended by the Bank automatically.

 

Q. I understand that the RBI’s COVID-19 Regulatory package allows Banks to reassess working capital requirements. How can I avail this benefit? Do I need to submit any documents in this regard?

The Bank will consider you as an eligible borrower for providing relief under ‘Easing of Working Capital Financing’ as defined in RBI’s COVID-19 Regulatory package if:

  • Your account classification with the Bank is ‘Standard’ as on March 01, 2020 and is not reported as Fraud, Red Flagged Account or Wilful Defaulter by the Bank or any other Banks

  • You are facing financial stress on account of the prevailing COVID-19 situation

If you are eligible as per the criteria above, and are interested in availing this benefit, you would need to make a request specifically to the Bank by writing to your Relationship Manager to take it forward.

As part of the request, you are also required to substantiate in what form have you been affected by the COVID-19 situation (e.g. supply chain disruptions, manpower shortage, lack of or drop in sales offtake and partial or complete shutdown of manufacturing facilities, among others) and provide relevant supporting documents.

Based on this, the Bank will make an independent assessment of your eligibility and review your working capital cycle or drawing power.

 

Q. Can I avail additional working capital limits under the ‘Easing of Working Capital Finance’ guidelines that are part of RBI’s COVID-19 Regulatory package? If so, to what extent?

If you have been assessed to be an eligible borrower for availing ‘Easing of Working Capital Financing’ as outlined in the above question and have requested the Bank for additional limits, the Bank would reassess your working capital (WC) cycle or drawing power and where justifiable, may increase your overall WC limit in the nature of an ad-hoc facility. Please note that such ad-hoc incremental limits, if sanctioned would need to be closed as per approved terms.

 

Q. I am a borrower who has been affected by the COVID-19 situation. I have LC payments that have devolved during the moratorium period. Can the Bank provide any special dispensation under RBI’s COVID-19 regulatory package so that I can make payments under the LC?

The LC payments already due or that may fall due during March 01, 2020 to August 31, 2020 need to be paid or honoured.

However, if you have been assessed to be an eligible borrower for availing ‘Easing of Working Capital Financing’ as outlined above, the Bank would reassess your working capital cycle or drawing power or request for additional CC or OD limits and where justifiable, make available such relaxations that could ease your ability to make payments under the LCs availed for working capital purposes.

 

Q. I have working capital facilities that are of fixed tenure such as Working Capital Demand Loan / Dealer financing / Packing Credit / Commodity Financing. Is the moratorium scheme applicable on them as well?

The Bank can provide extension of tenure (maximum up to three months), in case these facilities are unpaid and due between June 01, 2020 and August 31, 2020 subject to satisfactory assessment by the Bank of the impact of COVID-19 on your business and working capital cycle. For making such request, you will need to write to your Relationship Manager.

YES BANK recommends that customer with adequate funds and cash flow continues to pay the instalments (to the extent possible) within the due date to avoid additional interest and elongation of tenure.

The above FAQs refer to the broad guidelines that the Bank shall follow with respect to implementing COVID-19 regulatory package. However, it may be noted that the Bank retains the discretion to take decisions or amend any of the above, in line with its policy and RBI guidelines basis case and product specific aspects.

 

FREQUENTLY ASKED QUESTIONS (FAQs): COVID-19 RELIEF PACKAGE FOR YES BANK CREDIT CARDS Extended moratorium scheme

 

What is the Extended Moratorium Scheme (June 1, 2020 August 31, 2020)?

  • The Reserve Bank of India (RBI) issued the COVID-19 – Regulatory Package notification on March 27, 2020. Further, on May 23, 2020, RBI announced an extension of the Moratorium Scheme till August 31, 2020. In accordance with the circular, YES BANK offers an extension of the Moratorium Scheme on Credit Card payment dues from June 1, 2020 to August 31, 2020.

  • Cardmembers availing of the Extended Moratorium Scheme shall continue to accrue applicable interest (up to 42% p.a., as per the product offering) for the extended period.

 

Who is eligible for the Extended Moratorium Scheme?

  • Extended Moratorium Scheme is available to all YES BANK Credit Cardmembers, except those who have been classified as Non-Performing Asset (NPA) on their Credit Card as on February 29, 2020.

  • YES BANK reserves the right to determine the eligibility of a Cardmember.

  • YES BANK reserves the right to disqualify or exclude any Cardmember from the moratorium scheme, if any fraudulent activity being carried out for the purpose of availing the moratorium scheme or otherwise is identified by the Bank.

 

Who is part of the Extended Moratorium Scheme?

  • All Cardmembers who were part of the Moratorium Scheme between March 1, 2020 to May 31, 2020 shall continue to be part of the Extended Moratorium Scheme. Such Cardmembers, in case they wish to opt out of the Extended Moratorium Scheme, are requested to make payment equal to or more than Minimum Amount Due (MAD) as per their May, 2020 statement on or before June 9, 2020.

  • Eligible Cardmembers, who are not part of Moratorium Scheme, can opt-in for the Extended Moratorium Scheme on or before June 9, 2020. Cardmembers are requested to refer to communication sent by YES BANK through e-mail and / or SMS to avail the Extended Moratorium Scheme.

  • Participation in the moratorium scheme is entirely voluntary and it is understood that the participation by the Cardmember/s shall be deemed to have been made on a voluntary basis.

  • All eligible Cardmembers, who are not part of Moratorium Scheme but miss paying the Minimum Amount Due on or before their due date as per statements generated in June, 2020 or July, 2020 shall be automatically considered to be part of the Extended Moratorium Scheme.

 

If I am part of the extended moratorium scheme, when do I have to make my final payment post the scheme?

  • Cardmembers, who are part of the Extended Moratorium Scheme, are required to make payment (equal to or more than minimum amount due) as per payment due date on or after September 1, 2020 as per their Credit Card statement.

 

Will I be charged interest on my Credit Card outstanding, when I make payment after the moratorium scheme and if yes, how much?

  • Your Credit Card will continue to accrue interest (up to 42% p.a., as per the product offering) as per interest rate applicable on your Credit Card (please refer to Most Important Terms and Conditions – MITC available on www.yesbank.in for charges as applicable) and will be payable on the due date at the end of the extended moratorium period.

 

Illustration of Interest Calculation:

Please find below an example of how the interest shall accrue on your Credit Card outstanding of INR 1,00,000/- for three months period. This is only for illustration purpose, actual interest may vary depending on the period of outstanding and interest rate as applicable on your Credit Card.

 

Outstanding Amount for calculation of Interest applicable

Applicable Interest rate (p.a.) (Will vary as per product offering)

Period for Interest Calculation

Additional Interest for the Period

Total Outstanding at the end of the Interest Period

INR 1,00,000

42%

Three months

Rs.10,871.8

Rs.1,10,871.8

 
 

Will I be charged any Late Payment Fee for non-payment of due during the moratorium period?

  • For Cardmembers availing the extended moratorium scheme on their Credit Card, late payment charges shall not be levied from the date the Cardmembers are part of the Extended Moratorium Scheme. Any Late Payment Charges levied prior to Cardmember being part of the Extended Moratorium Scheme, shall be payable by the Cardmember.

 

Can I continue to spend on my Credit Card if I am part of the Extended Moratorium Scheme on my Credit Card?

  • All Cardmembers who are part of the Extended Moratorium Scheme, their Credit Card shall be in the temporary blocked status after 9th June 2020 till the Extended Moratorium Period. Hence, they will not be allowed to transact on their Credit Card during this Period.

  • Cardmembers who are part of the Extended Moratorium Scheme after June 9, 2020, can opt out any time during the Extended Moratorium Period by making a payment of Total Amount Due (TAD) as per their latest statement. Such Cardmembers shall be able to transact again on their Credit Card within two working days on receipt of their Payment.

 

I do not want to use the extended moratorium scheme on my Credit Card. What do I need to do?

  • All Cardmembers, who were part of the Moratorium Scheme (March 1, 2020 to May 31, 2020) shall automatically become part of the Extended Moratorium Scheme (applicable from June 1, 2020 to August 31, 2020). Any such Cardmember, who wishes to opt out of the Extended Moratorium Scheme, are requested to make payment (equal to and more than the Minimum Amount Due) for their May, 2020 statement on or before June 9, 2020. The Bank encourages the Cardmembers with adequate funds to pay the total amount due (TAD) on their Credit Cards to avoid accrual of additional interest.

  • Cardmembers, who are not part of the extended moratorium scheme will continue to receive regular statement as per their existing billing cycles and will continue to be governed by the terms and conditions with respect to the credit free period, applicable fees and interest as mentioned in Credit Cards Most Important Terms and Conditions (MITC).

 

Can I make payment during the Extended Moratorium Period even if I have opted in for the Extended Moratorium Scheme?

  • Cardmembers, who are part of the extended moratorium scheme, can make payment towards their Credit Card dues during the extended moratorium period. Cardmember making such payments will benefit as interest would be levied only on the residual amount, as per applicable interest rate on the type of card. The Bank encourages the Cardmembers with adequate funds to continue to pay the dues on their Credit Cards to avoid accrual of additional interest.

 

Will Credit Limit on my Credit Card be decreased/modified during the moratorium period, if I am part of the Moratorium Scheme?

  • For all Cards under the extended moratorium, transactions will be temporarily blocked after June 9, 2020 for the extended moratorium period.

  • At YES BANK’s discretion, credit limit on Credit Cards can be decreased or modified for all Cards under the extended moratorium.

  

Will my CIBIL score be impacted if I am part of the Extended Moratorium Scheme on Credit Card?

  • There will no impact on Cardmember’s CIBIL score due to non-payment on their YES BANK Credit Card during the extended moratorium period if Cardmember is part of the extended moratorium scheme.

 

I have an existing EMI facility on the Credit Card? What happens to that if I am part of the moratorium scheme?

  • For Cardmembers, who are part of Extended Moratorium Scheme, their EMI scheduled to be posted for June 2020 and July 2020 statement, will be deferred and will get posted from August, 2020 statement onwards.

 

I have set an auto debit for my Credit Card for payment. Will the Bank honor Auto Debit during moratorium period?

  • For all Cardmembers availing the extended moratorium scheme, auto debit will not be triggered during the extended moratorium period. However, auto debit facility will resume at the end of the extended moratorium period.

 

Will I continue to get the Credit Card statement if I am part of the extended moratorium scheme?

  • Credit Card statement will continue to be generated for Cardmembers who are part of the extended moratorium scheme. However, payment for such statements can be made at the end of the extended moratorium period.

 

What about the standing instructions including YES PAY NOW instructions on my credit card such as rent payments or utility bill payments?

  • As the Credit Card shall be in the blocked status (post June 9, 2020) for all Cardmembers, who are part of the Extended Moratorium Scheme, Standing Instructions or YES PAY NOW transactions shall not be processed. Cardmembers are requested to make alternate arrangements for Payments during the Extended Moratorium Period.

 

Can I avail Quick Loan after I opt for extended moratorium Scheme?

  • Cardmembers who are part of the extended moratorium scheme, shall not be allowed to apply for Quick Loan.

 

YES BANK recommends that Cardmembers continue to pay total outstanding amount (to the extent possible) within the due date to avoid accumulation of interest charges at the end of the moratorium period.

 

FREQUENTLY ASKED QUESTIONS (FAQs): COVID-19 RELIEF PACKAGE FOR YES BANK TERM LOANS/CASH CREDIT/OD

 

Q. What is the Moratorium Scheme?

The Reserve Bank of India (RBI) has issued COVID-19 – Regulatory Package notification, dated March 27, 2020.

In accordance with the notification, YES BANK offers a moratorium of up to three months in respect of all term loans on payment of all instalments (including principal and interest) falling due between March 01, 2020 and May 31, 2020, including interest deferment benefit available to cash credit or overdraft facility.

If the customer opts for this scheme or is unable to pay his dues during the moratorium period, then the repayment schedule for such loans will be deferred by up to three months. However, interest shall continue to accrue on the outstanding amount of the term loans during the moratorium period.

 

Q. Which loan products are eligible for moratorium?

Moratorium can be offered in respect of all term loans (including agricultural term loans, retail and crop loans) and working capital facilities for below payments falling due during the moratorium period.

(i) Principal and/or interest components;

(ii) Bullet repayments;

(iii) Equated Monthly Instalments or EMIs;

(iv) Credit Card dues

 

Q. In case I opt for moratorium, which instalments does the moratorium cover?

The moratorium covers all unpaid principal and interest dues for the month of March, 2020 and all principal and interest amounts falling due in the months of April and May, 2020.

 

Q. If I avail this moratorium, is it that the Bank will not charge any interest during the moratorium period?

In line with RBI guidelines, the Bank will continue to charge or accrue interest during the period of moratorium. This interest accrued during the moratorium period shall need to be paid by the customer to the Bank at the end of the moratorium period. The Bank encourages the Borrower’s with adequate funds and cash flows to continue to pay the instalments to avoid additional interest and elongation of the tenure.

 

Q. My loan is overdue because the principal / interest for earlier months is unpaid. Will I get standstill benefit for my account so that it does not get classified as Non-performing account (NPA)?

The moratorium benefit for the principal and interest as per RBI guidelines is only eligible for dues falling between March 01, 2020 and May 31, 2020, and not for overdues outstanding as on March 01, 2020. All overdues prior to March 01, 2020 shall continue to attract the IRAC guidelines as applicable, without any moratorium dispensation. Hence, you are requested to clear your outstanding dues or default pertaining to the period prior to March 01, 2020, for which the extant IRAC and provisioning norms shall apply.

 

Q. How will my loan tenure be adjusted if I avail for the moratorium benefit?

For the retail loans under the Equated Monthly Instalments (EMI) structure, the tenure will be extended by the corresponding period for which the moratorium is availed e.g. if the EMI for the month of March, 2020 is paid, and the moratorium for April and May, 2020 has been availed, then the loan tenure will be extended by two months. However, there will be additional EMIs which will be payable on account of the impact of the deferred interest during the moratorium period.

For example, a customer with an EMI based loan having Principal outstanding of INR 15 lakh with a residual tenure of 15 years, would need to pay an approximate additional interest of INR 1.01 lakh [assuming ROI of 8%] i.e. approximately 11 additional EMIs (which will include the three EMIs pertaining to the moratorium) due to the three months moratorium.

For non EMI based corporate loans, the repayment schedule for the term loan shall have a parallel shift of all instalments by a period of up to three months, in case the moratorium benefit is availed.

 

Q. Do I need to submit fresh Auto Debit / Post Dated Cheque’s / NACH mandates?

No, if you opt for the moratorium scheme, the residual tenure will increase to recover the accrued interest during moratorium period. However, in case the EMI or instalment amount increases or existing NACH mandate or PDC expires, then a fresh mandate or PDC will be required.

 

Q. When do I have to pay the interest that would have accrued during the moratorium period?

Term Loans – The accrued interest shall be payable after the completion of the moratorium period. The schedule of repayment of such interest shall be communicated by the Bank to the borrower.

For CC/OD facility, the accrued interest shall be payable immediately after the completion of the moratorium period on June 01, 2020.

 

Q. What if I make any repayment(s) during the moratorium period after availing the moratorium benefit?

In case you make any repayment(s) during the moratorium period after availing the moratorium benefit, then such repayments will be adjusted against any overdues or considered as advance payment for future dues.

 

Q. Will I be charged penal charges or penal interest for availing the moratorium benefit?

No, the Bank would not charge any penal charges or penal interest for availing the moratorium benefit during the moratorium period. The Bank only will accrue the interest as per the loan contract rate during this period. However, in case the borrower does not pay such accrued interest as and when the same becomes due, then penal charges or penal interest would be applicable.

 

Q. If I avail the moratorium, we understand as per RBI guidelines that interest will continue to accrue. Will this not lead to reduction of our available CC/OD limit as the interest will get debited into the utilised amount and therefore consume the limit?

Though the Bank will continue to accrue interest on CC or OD line during the moratorium period, it will not be debited to your CC or OD account till the end of the moratorium period. Therefore, you can continue to utilise your CC or OD line without any reduction on account of interest billed during the moratorium period.

 

Q. If I avail the moratorium, then will this have an impact on credit / bureau score?

In line with RBI guidelines, the moratorium on payments will not qualify as a default for the purposes of supervisory reporting and reporting to Credit Information Companies (CICs)/credit bureau by the Bank during the moratorium period. Hence, there will be no adverse impact on your credit or bureau score or asset classification during the moratorium period.

However, any delay in the payment of these dues after completion of the moratorium period under the revised schedule shall be reported to the Credit Information Companies (CICs) or credit bureau by the Bank and would thereby impact your credit score.

 

Q. If I have taken loans through Self Help Groups/Joint Liability Groups, do I need to submit specific request for availing the moratorium benefit?

Specific request is not required for the loans availed through Self Help Groups or Joint Liability Groups. For such borrowers, the moratorium scheme shall be extended by the Bank automatically.

 

Q. I understand that the RBI’s COVID-19 Regulatory package allows Banks to reassess working capital requirements. How can I avail this benefit? Do I need to submit any documents in this regard?

The Bank will consider you as an eligible borrower for providing relief under ‘Easing of Working Capital Financing’ as defined in RBI’s COVID-19 Regulatory package if:

Your account classification with the Bank is ‘Standard’ as on March 01, 2020 and is not reported as Fraud, Red Flagged Account or Wilful Defaulter by the Bank or any other Banks

You are facing financial stress on account of the prevailing COVID-19 situation

If you are eligible as per the criteria above, and are interested in availing this benefit, you would need to make a request specifically to the Bank by writing to your Relationship Manager to take it forward.

As part of the request, you are also required to substantiate in what form have you been affected by the COVID-19 situation (e.g. supply chain disruptions, manpower shortage, lack of or drop in sales offtake and partial or complete shutdown of manufacturing facilities, among others) and provide the relevant supporting documents.

Based on this, the Bank will make an independent assessment of your eligibility and review your working capital cycle or drawing power.

 

Q. Can I avail additional working capital limits under the “Easing of Working Capital Finance” guidelines that are part of RBI’s COVID-19 Regulatory package? If so, to what extent?

If you have been assessed to be an eligible borrower for availing ‘Easing of Working Capital Financing’ as outlined in the above question and have requested the Bank for additional limits, the Bank would reassess your working capital (WC) cycle or drawing power and where justifiable, may increase your overall WC limit in the nature of an ad-hoc facility. Please note that such ad-hoc incremental limits, if sanctioned would need to be closed as per approved terms.

 

Q. I am a borrower who has been affected by the COVID-19 situation. I have LC payments that have devolved in March 2020. Can the Bank provide any special dispensation under RBIs COVID-19 regulatory package so that I can make payments under the LC?

The LC payments already due or that may fall due during March 01, 2020 to May 31, 2020 need to be paid or honoured, and are not eligible for relief by way of this moratorium scheme.

However, if you have been assessed to be an eligible borrower for availing ‘Easing of Working Capital Financing’ as outlined in the questions above, the Bank would reassess your working capital cycle or drawing power or request for additional CC or OD limits and where justifiable, make available such relaxations that could ease your ability to make payments under the LCs availed for working capital purposes.

 

Q. I have working capital facilities that are of fixed tenure such as Working Capital Demand Loan / Dealer financing / Packing Credit / Commodity Financing. Is the moratorium scheme applicable on them as well?

The Bank can provide extension of tenure (maximum up to three months), in case these facilities are unpaid and due between March 01, 2020 and May 31, 2020 subject to satisfactory assessment by the Bank of the impact of COVID-19 on your business and working capital cycle. For making such request, you will need to write to your Relationship Manager to take the assessment forward.

 

Q. In case I DONOT opt for moratorium, but am unable to pay my instalment/interest during the moratorium period?

If you are unable to make payment as per the schedule, you will automatically be registered for the moratorium scheme. In this case, your repayment cycle will resume from the month of June, 2020. Revised schedule of loan repayment will be emailed to you.

 

YES BANK recommends that customer with adequate funds and cash flows continue to pay the instalments (to the extent possible) within the due date to avoid additional interest and elongation of the tenure.

The above FAQs refer to the broad guidelines that the Bank shall follow with respect to implementing COVID-19 regulatory package. However, it may be noted that the Bank retains the discretion to take decisions or amend any of the above, in line with its policy and RBI guidelines basis case and product specific aspects.

 

FREQUENTLY ASKED QUESTIONS (FAQs): COVID-19 RELIEF PACKAGE FOR
YES BANK COMMERCIAL CREDIT CARDS -
Extension of moratorium scheme

 

What is the Extended Moratorium Scheme (June 1, 2020 – August 31, 2020)​?

  • The Reserve Bank of India (RBI) issued the COVID-19 – Regulatory Package notification on March 27, 2020.Further, on May 23,2020, RBI announced an extension of the Moratorium Scheme till August 31, 2020. In accordance with the circular, YES BANK offers an extension of the Moratorium Scheme on Credit Card payment dues from June 1,2020 to August 31, 2020.

  • Commercial Credit Card Corporate Customer availing of the Extended Moratorium Scheme shall continue to accrue applicable interest (up to 28.8% p.a., as per the product offering) for the extended period.

 

Who is eligible for the Extended Moratorium Scheme?

  • Extended Moratorium Scheme is available to all YES BANK Commercial Credit Corporate Customer, except those who have been classified as Non-Performing Asset (NPA) on their Credit Card as on February 29, 2020.

  • YES BANK reserves the right to determine the eligibility of a Corporate customers

  • YES BANK reserves the right to disqualify or exclude any Corporate customers from the moratorium scheme, if any fraudulent activity being carried out for the purpose of availing the moratorium scheme or otherwise is identified by the Bank

 

Who is part of the Extended Moratorium Scheme?

  • All eligible Corporate customers who were part of the Moratorium Scheme between March 1, 2020 to May 31, 2020 shall continue to be part of the Extended Moratorium Scheme. Such Corporate customers, in case they wish to opt out of the Extended Moratorium Scheme, are requested to make payment of the Total Account Due (TAD), as per their May 2020 statement on or before June 9,2020.

  •  Eligible Corporate Customer, who are not part of Moratorium Scheme, can opt-in for the Extended Moratorium Scheme on or before June 9, 2020. Please refer to communication sent by YES BANK through Email and SMS to Authorized Signatory’s registered details to avail the Extended Moratorium Scheme

  • Participation in the moratorium scheme is entirely voluntary and it is understood, that the participation by the Corporate customers shall be deemed to have been made on a voluntary basis

  • All eligible Corporate customers, who do not opt for the Extended Moratorium Scheme, but miss paying the Total Amount Due on or before their due date as per statements generated during the Extended Moratorium Period, shall be automatically considered to be part of the Moratorium Scheme.

 

If am part of the moratorium scheme, when do I have to make my final payment post the scheme?

  • All Corporate customers who are part of the Extended Moratorium Scheme, are required to make payment (equal to Total Amount Due) as per payment due date on or after September 1, 2020 as per the Credit Card statement.

 

Will I be charged interest on my Commercial Credit Card outstanding, when I make payment after the moratorium scheme and if yes, how much?

  • Your Commercial Credit Card will continue to accrue interest (Up to 28.8%p.a., as per the product offering) as per the interest rate applicable on your Card (please refer to Most Important Terms and Conditions – MITC available on www.yesbank.in for charges as applicable) and will be payable on the due date at the end of the Moratorium period.

 

Illustration of Interest Calculation:

Please find below an example of how the interest shall accrue on your Credit Card outstanding of INR 1,00,000/- for three months period. This is only for illustration purpose; actual interest may vary depending on the period of outstanding and interest rate as applicable on your Credit Card.

 

Outstanding Amount for calculation of Interest applicable

Applicable Interest rate (p.a.)

Period for Interest Calculation

Additional Interest for the Period

Total Outstanding at the end of the Interest Period

INR 1,00,000

28.8%

Three months

INR 7374.18

INR 1,07,374.18

 

Can I continue to spend on my Credit Card if I am part of the Extended Moratorium Scheme on my Credit Card?

  • All Corporate customers who are part of Extended Moratorium Scheme, their Credit Card shall be in the temporary blocked status after June 9,2020 till the Extended Moratorium Period. Hence, they will not be allowed to transact on their Credit Card during the Extended Moratorium Period.

  • Corporate customers who are part of the Extended Moratorium Scheme after June 9, 2020, can opt out any time during the Extended Moratorium Period by making a payment of Total Amount Due (TAD) as per their latest statement. Such Corporate customers shall be able to transact again on their Credit Card within two working days on receipt of their Payment.

 

I do not want to use the Moratorium scheme on my Credit Card. What do I need to do?

  • All Corporate customers, who were part of the Moratorium Scheme (March 1,2020 to May 31, 2020) will automatically become part of the next phase of Moratorium (applicable from June 1, 2020 to August 31, 2020). Any such Corporate customers, who wish to opt out of the Extended Moratorium Scheme, are requested to make payment (equal to Total Account Due) for their May 2020 statement on or before June 9, 2020.

  • Corporate customers, who are not part of the extended moratorium scheme will continue to receive regular statement as per their existing billing cycles and will continue to be governed by the terms and conditions with respect to the credit free period, applicable fees and interest as mentioned in Credit Cards Most Important Terms and Conditions (MITC).

 

Can I make payment during the Extended Moratorium Period even if I have opted in for the Extended Moratorium Scheme?

  • Corporate customers who have opted-in for the extended moratorium scheme, can make payment towards their Corporate Credit Card dues during the moratorium period. Corporate customers making such payments will benefit as interest would be levied only on the residual amount, as per applicable interest rate. The Bank encourages the Corporate customers to continue to pay the dues on their credit cards to avoid accrual of interest.

 

Will Credit Limit on my Commercial Credit Card be decreased/modified during the Moratorium period, if I am part of the Moratorium Scheme?

  • For all Cards under the extended moratorium, transactions will be temporarily blocked after June 9,2020 for the extended moratorium period.

  • At YES BANK’s discretion, credit limit on Credit Cards can be decreased or modified for all cards under the extended moratorium

 

Will my Credit Score be impacted if I am part of the Extended Moratorium Scheme on Credit Card?

  • No. Opting for the Moratorium will not affect the Credit Rating or Credit Score of the Corporate.

 

I have set an auto debit for my Commercial Credit Card for payment. Will the Bank honor Auto Debit during moratorium period?

  • For all Corporate customers availing the extended moratorium scheme, auto debit will not be triggered during the extended moratorium period. However, auto debit facility will resume at the end of the extended moratorium period.

 

Will I continue to get the Credit Card statement if I am part of the extended moratorium scheme?

  • Credit Card statement will continue to be generated for Corporate customers who have chosen to opt in for the extended moratorium scheme. However, payment for such statements can be made at the end of the extended moratorium period.

 

Note:

The term “Interest” shall mean and include Finance Charges on revolving credit, on cash advance and/or on overdue amount as specified in the Schedule of Charges

 

FREQUENTLY ASKED QUESTIONS (FAQS): GUARANTEED EMERGENCY CREDIT LINE SCHEME FOR MSME

Q. What is Guaranteed Emergency Credit Line (GECL)?

The GECL is a loan for which 100% guarantee would be provided by National Credit Guarantee Trustee Company (NCGTC) to the Bank , and which will be extended in the form of additional working capital term loan facility to eligible MSMEs/ Business Enterprises and interested Pradhan Mantri Mudra Yojana (PMMY) borrowers. Credit under GECL would be up to 20% of the borrower’s total outstanding credit up to Rs. 25 crore, excluding off-balance sheet and non-fund based exposures, as on Feb 29, 2020, i.e., additional credit shall be up to Rs. 5 crore.

To access the Scheme Details Click Here and to access Operational Guidelines by Government visit https://www.eclgs.com/

 

Q. What is the objective of the Scheme?

The Scheme is a specific response to the unprecedented situation COVID-19 to enable MSMEs/Business enterprises to meet their operational liabilities and restart their businesses.

 

Q. What is the duration of the Scheme?

The Scheme would be applicable to all loans sanctioned under GECL during the period from May 23, 2020 to Oct 31, 2020, or till an amount of Rs. 3 lakh crore is sanctioned under GECL across all bank and lending institutions, whichever is earlier.

 

Q. What will be the eligibility criteria for MSMEs to avail the benefit of the Scheme?

The eligibility criteria under the Scheme are as under:

  • All MSME borrower accounts with combined fund based outstanding loans across all Lending institutions up to Rs. 25 crore as on Feb 29, 2020, and annual turnover of up to Rs. 100 crore in FY 2019-20. In case accounts for FY 2019-20 are yet to be audited/finalized, then Bank may rely upon the borrower’s declaration of turnover or GST returns.

  • The Scheme is valid only for existing customers on the books of the MLI.

  • Borrower accounts should be classified as regular, SMA-0 or SMA-1 as on Feb 29, 2020. Accounts classified as NPA or SMA-2 as on Feb 29, 2020 will not be eligible under the Scheme.

  • The borrower must be GST registered in all cases where such registration is mandatory. This condition will not apply to borrowers that are not required to obtain GST registration.

 

Q. Borrowers under which constitutions are eligible to avail this scheme?

Proprietorship firms, partnership firms, limited liability partnerships (LLPs), registered companies and trusts are eligible.

 

Q. Will GECL be extended as a separate loan account, or as part of the existing loan account of the borrower?

A separate loan account shall be opened for the borrower for extending additional credit under GECL. This account will be distinct from the existing loan account(s) of the borrower.

 

Q. Will loans under the Scheme be automatically given without any application or solicitation from the borrower?

This is a pre-approved loan. An offer will be sent by YBL to all the eligible borrowers for a pre-approved loan which the borrower may choose to accept. If the borrowing entity decides to avail the loan, it will be required to complete requisite documentation. Thus, an Opt-Out option will be provided to eligible borrowers under the Scheme, i.e., if the borrower is not interested in availing the loan, he/she may indicate accordingly and choose Opt-Out option.

 

Q. What would be the procedure followed in case a borrower has loan accounts with multiple lenders?

  • In case a borrower has existing limits with multiple lenders, GECL may be availed either through one lender or each of the current lenders in proportion depending upon the agreement between the borrower and all the Lending Institutions.

  • In case the borrower wishes to take from any lender an amount more than the proportional 20% of the outstanding credit that the borrower has with that particular lender, a No Objection Certificate (NOC) would be required from all other lenders.

  • No NOC will, however, be required if the GECL availed from a particular lender is limited to the proportional 20% of the outstanding credit that the borrower has with that lender.

 

Q. Will the interest rate on GECL be capped?

Yes, interest rates on GECL are capped at External benchmark rate + Bank’s internal spread + 1% subject to maximum of 9.25% per annum.

 

Q. What would be the tenor of loans provided under GECL?

The tenor of loans provided under GECL shall be four years from the date of disbursement. No pre-payment penalty shall, however, be charged by the bank in case of early repayment for this facility.

 

Q. Is there any moratorium period prescribed under the Scheme?

Yes, a moratorium period of one year on the principal amount shall be provided for GECL funding. Interest shall, however, be payable monthly during the moratorium period. The principal shall be repaid in 36 instalments after the moratorium period is over.

 

Q. Will any guarantee fee be charged under the Scheme by NCGTC?

As per current guidelines, NCGTC will not charge any guarantee fee under the Scheme.

 

Q. Will any processing fee be charged by YBL for sanction of loans under GECL?

No. Bank shall not charge and processing fees on the GECL loan.

 

Q. Will YBL ask for any additional collateral for the GECL facility?

No additional collateral shall be asked by YBL for additional credit extended under GECL.

To view complete list of FAQs , kindly refer here.

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