Will the Bank Generate my Credit Card Bill During the Moratorium Period?

Highlights

  • All the Banks will generate the Credit Card bill during the 3 Months Moratorium Period.
  • See how the 3 Months Suspension of the Credit Card bill payment will affect the amount of generated credit card bill.

Every Individual has a lot of confusion regarding the RBI’s 3 Months Moratorium Update. The RBI’s 3 months moratorium update clearly says that an individual can skip the payment of EMIs and Credit card bills for 3 months and it will not be going to affect their CIBIL Score and the bank will also not charge any extra fees for the late payment. But some individuals are worried about their credit card bill and statement whether it will be generated during the moratorium period or not. Well, the bank will generate the credit card bill every month irrespective of the moratorium period and it is up to you to clear the bill on time or delay it for 3 months.

There will be no effect on the Interest that will be charged on the outstanding amount of the credit card. The bank will charge applicable interest on the outstanding amount whether you pay the bill on time or delay it by 3 months.

Amount of Bill Generated Every Month

You must go through the following examples to understand the differences between the bill amount generated every month.

If You Choose 3 Months Moratorium Period

MonthsBill AmountInterest per MonthTotal Bill generated if Not Paid on Time
MarchINR 150003% p.mINR 15450
AprilINR 120003% p.mINR 28274
MayINR 200003% p.mINR 49722
Total of 3 MonthsINR 47000INR 49722

If You Pay the Credit Card Bill on Time

After the analysis of both the conditions, it is clear that you have to pay an extra amount of INR 2722 as interest if you skip the payment for 3 months. If in case you pay the credit card bill amount on time then no interest will be charged on the outstanding amount and you have to pay the exact bill that is generated by the bank.

Conclusion

It must be clear to you that the bank will generate the credit card billat the end of every month whether you take the 3 months suspension or not. Thebilling amount may vary just because of the interest amount and the addition ofunpaid previous bill amount. This is the effect the moratorium period makes onthe credit card bill but the bank will not stop generating the credit cardbills every month.

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