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Getting Credit Card Bill Payment Reminders Despite RBI’s 3 Months Moratorium

Highlights

  • Are You still receiving reminders for the payment of Credit Card bills despite 3 months suspension?
  • Find out the reason why you are receiving such alerts even after the RBI’s Update.

If you're searching for what is going to happen to your credit cards post the RBI's decision of giving a 3-month moratorium period for all retail borrowers in its monetary policy meet held on March 24-27, 2020, let's be told that it's going to cover you too. But, in your best interest, it is advisable to pay your bills on or before the due date as the interest will be accrued for three months and get combined together to form a tall amount at the end of the moratorium period. So, if you get your salary during this phase, look to pay off your bills. The moratorium, which was ending on May 31, 2020, has been extended till August 31, 2020.

As per the new guidelines of the Reserve Bank of India after the lockdown and Coronavirus Outbreak, the credit card users can skip their bill payment for three months. Suspending the payment for 3 months will neither affect their CIBIL Score nor force them to pay the late payment fees. But there are some credit card users who are getting credit card bill payment reminders despite RBI’s 3 Months Moratorium period. They are receiving alerts on their mobile phones and emails to maintain sufficient balance into their bank account and the bill amount of the credit card will be deducted from their account. So, they are worried that why they are receiving such reminders although the RBI has given 3 months suspension for the payment of the credit card bill.

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Reasons for Receiving Alerts to Pay Credit Card Bill Even After 3 Month Moratorium

There are basically two reasons for getting Credit Card Bill Payment alert even after the 3 months suspension. The two reasons for this alert are as follows.

Auto-Debit Payment Method:- The most possible reason for this reminder is that you might have activated the payment method of Auto-Debit to pay the credit card bills. In this method of payment, the bank will automatically deduct the credit card bill amount on the due date if it finds that your account has sufficient balance.  

You have to place a request in front of the bank to discontinue the auto-debit method for payment. The reason for receiving such notifications is the standing instruction that was given earlier to the bank for deducting the credit card bill amount.

Credit Card User hasn’t informed the Bank:- It is your duty to inform the bank to discontinue the automatic deduction of your credit card bill amount from your account. Once you deactivate the auto-payment method, you’ll not receive any alert for 3 months.

You can place an online request to the bank for deferring the credit card payment for 3 months. Unless and until you deactivate the auto-debit service, you’ll keep on receiving the reminders from the bank regarding the payment of your credit card bill.

On the other hand, you have to show the bank that you are facing the financial crisis due to lockdown and Coronavirus in order to skip the credit card bill payment for 3 months.

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Ways to Deactivate Auto-Debit Payment Method

Net Banking:- Almost every bank provides net banking services to its customers. So, you can open the net banking service and post a request for the cancellation of the standing instruction given for the deduction of the credit card bill from your account automatically.

Mobile Banking Application:- Most of the banks have their own application that makes the customers manage their account from their smartphones. You can place a request for deactivating the auto-debit option and once this service deactivates you will not receive the credit card bill payment reminders.

Phone Banking:- You can call the bank’s representative for placing the request to deactivate the auto-debit payment method. After the deactivation, you’ll not get any alert regarding the payment of the credit card bill.

Consequences of Deferring the Credit Card Bill Payment for 3 Months

  • The bank will charge the interest on the outstanding amount whether you make the payment on time or delay it by 3 months.
  • The credit card payment is only postponed for 3 months but it is not waived off.
  • You’ll get the CIBIL Score Advantage and Late Payment fee exemption according to the 3-Months Moratorium but the interest will be charged regularly and it is not exempted.

Conclusion

Now you are aware of the reasons why you are getting Credit Card Bill payments Reminders Despite RBI’s 3 Months Moratorium. So the standing instructions for the credit card bill amount deduction will deduct the amount from your account if the sufficient balance is maintained. You have to inform the bank that you are unable to pay the credit card bill for 3 months and then only you can apply the 3 months moratorium period.

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