RBI Home Loan Moratorium: Ensuring EMIs Are Not Deducted
India's Reserve Bank of India (RBI) has recently announced that home loan EMIs will not be deducted for the next three months. This policy has brought relief to many borrowers. However, to ensure that your home loan EMIs are not automatically deducted from your bank account, it is crucial to take the necessary steps. In this guide, we will discuss how you can protect yourself from unintended deductions and highlight the precautions you should take.
Understanding the RBI's Home Loan Moratorium
The RBI has taken this step to provide financial relief to home loan borrowers during the unprecedented times of economic and health crises. The moratorium applies to home loans only and lasts for three months, beginning from the date of the announcement. This means that your bank will not deduct home loan EMIs from your account if you maintain the necessary balance.
Important Steps to Take
To prevent automatic deductions, you have a few options:
Contact Your Bank: The easiest way to avoid automatic deductions is to inform your bank by either calling them, sending an SMS, or logging into your online banking portal. When you do this, you are essentially advising the bank not to debited the EMIs for the next three months, even if the balance in your account is sufficient. Set Up Alerts: Some banks allow you to set up alerts for low balance. Use this feature to be informed before your account falls below the required balance for EMIs. Monitor Your Account: Regularly check your bank account to ensure that the balance never falls below the amount needed for an EMI. This proactive measure can help you avoid any deductions.What Happens if You Do Not Inform Your Bank?
Without an explicit instruction from you, your bank will follow its standard procedure. If your account balance is sufficient, the EMI will be deducted automatically from your account, which can lead to financial stress and potential penalties for bouncing checks.
How to Take Advantage of the Moratorium
To take full advantage of the RBI's moratorium, follow these steps:
Inform Your Bank: Contact your bank and advise them to not deduct the home loan EMIs for the next three months. You can do this via phone, SMS, or through your online banking portal. Verify the Policy: Confirm the details of the moratorium with your bank to ensure that you are eligible and fully understand the terms. Keep Track of Balance: Regularly monitor your account balance to avoid any automatic deductions during the moratorium period.Additional Tips for Managing Your Finance
During this period of financial relief, it is important to manage your finances wisely. Here are some tips:
Create a Budget: Plan your expenses and income to manage your finances effectively. Save for Emergencies: Continue to save for unforeseen expenses to ensure that you can meet your financial obligations even if the moratorium ends unexpectedly. Focus on Investments: Consider investing in low-risk options to grow your savings while the moratorium is in place.By taking these steps, you can ensure that you fully benefit from the RBI's home loan moratorium and avoid any unnecessary deductions from your bank account.
Conclusion
The RBI's three-month home loan moratorium is a valuable relief for borrowers facing financial difficulties due to the current circumstances. By taking the necessary steps to inform your bank, you can protect your account from unintended EMIs deductions. Regular monitoring and planning can help you fully benefit from this moratorium and maintain your financial stability.