Will the Bank Generate my Credit Card Bill During the Moratorium Period?
Last Updated : April 2, 2020, 7:47 p.m.
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
| Months | Bill Amount | Interest per Month | Total Bill generated if Not Paid on Time |
|---|---|---|---|
| March | INR 15000 | 3% p.m | INR 15450 |
| April | INR 12000 | 3% p.m | INR 28274 |
| May | INR 20000 | 3% p.m | INR 49722 |
| Total of 3 Months | INR 47000 | INR 49722 |
If You Pay the Credit Card Bill on Time
| Months | Bill Amount | Total Payable Amount |
|---|---|---|
| March | INR 15000 | INR 15000 |
| April | INR 12000 | INR 12000 |
| May | INR 20000 | INR 20000 |
| Total of 3 Months | INR 47000 | INR 47000 |
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 bill at the end of every month whether you take the 3 months suspension or not. The billing amount may vary just because of the interest amount and the addition of unpaid previous bill amount. This is the effect the moratorium period makes on the credit card bill but the bank will not stop generating the credit card bills every month.