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SBI relaxes payment obligation timelines amid COVID-19

SBIOn the backdrop of the current disruption in the market due to the coronavirus (COVID-19) pandemic and the 21 days lockdown till April 14, 2020, State Bank of India (SBI) has come forward to extend the timeline for payment of settlement amount by 3 months. Now, customers on boarded under the settlement scheme SBI OTS 2019/ Rin Samadhan 19-20/ General compromise can meet payment obligation by June 30, 2020.

Under One Time Settlement (OTS) 2019, the extension will be available only to those customers where the first two instalments of 5 percent/ 15 percent and 20 percent/ 25 percent have been received within the stipulated time of 30 days and 60 days respectively. The balance OTS amount can be paid by June 30, 2020. The bank has apprised that it will not charge any interest on the amount for this extended period.

Similarly, under Rin 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.

The bank which is India’s largest public-sector lender has committed 0.25 percent of its annual profit (FY 2019-20) to fight the COVID-19 outbreak situation in India. The fund used to fight COVID-19 pandemic will be spent from CSR (corporate social responsibility) funds.

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