RBI Framework 2.0: SBI Card puts in place mechanism for COVID stress relief

The Reserve Bank of India (RBI) has introduced a new directive under its Framework 2.0, aimed at providing relief to borrowers affected by the COVID-19 pandemic. This framework allows credit card issuers to offer a revised repayment option for customers facing financial distress due to the ongoing economic challenges. The directive emphasizes the need for financial institutions to implement measures that support customers struggling with repayment, ensuring they have access to necessary relief mechanisms without facing severe penalties or adverse impacts on their credit scores. Effective immediately, this framework applies to all major credit card issuers, including SBI Card, HDFC Bank, and ICICI Bank, among others. The RBI has mandated that these institutions must establish a clear process for customers to avail themselves of the revised repayment options, which may include reduced payment plans or extended payment terms. Issuers are required to communicate these options to their customers proactively, ensuring that those in need are aware of the relief measures available to them. For Indian cardholders, this means they should stay informed about the options being offered by their credit card issuers, particularly if they are experiencing financial difficulties. Customers are encouraged to reach out to their banks to understand the specific relief measures available to them under the RBI's new framework. It is crucial for cardholders to monitor their accounts and any communications from their banks, as this will help them navigate their repayment responsibilities more effectively during these challenging times.