May suspend non-essential services
Abhijit Lele | Mumbai
Last Updated at March 22, 2020 13:40 IST
Amid COVID19 outbreak in the country, banks will ensure to provide at least four essential services – cash deposits and withdrawals, cheque deposition, remittances and government transactions – at branches from March 23, 2020.
Banks may suspend other services depending on the situation, Indian Banks Association ( IBA) chief executive Sunil Mehta said.
The lock down clamped across states to contain spread of coronavirus will limit the ability to commute, impacting ability to provide banking services.
IBA, lobby group of Indian banking industry, said bank customers should visit the branch premises only in case of absolute necessity.
Most of the services that banks offer are available online. Customers should use the mobile and online banking channels for non-essential services.
Banks are working round-the-clock to ensure all digital channels are up-to-date and have all the information that people may need during this period.
Mehta said management committee of association has discussed options to support customer’s including emergency credit, keeping in mind hardships that many establishments may face due to economic slump and lockdown.
The State Bank of India (SBI) has framed scheme to offer emergency loans to existing borrowers whose operations are impacted by coronavirus. The loans will be granted at 7.25 per cent (per annum) fixed rate of interest. It is aimed at meeting the temporary liquidity mismatch arising out of covid-19 will be in force upto June 30, 2020.
The association has advised member banks to explore similar scheme for their customers, Mehta added.
First Published: Sun, March 22 2020. 13:40 IST