Mangaluru: Several Non-Resident Indian (NRI) borrowers have reportedly approached banks requesting postponement of Equated Monthly Instalments (EMIs) on loans such as housing, vehicle, personal and mortgage loans, amid financial pressures and global uncertainties.
However, banking officials indicate that such relief cannot be granted unilaterally and requires regulatory approval from the Reserve Bank of India or the Government of India.
Rising requests from NRI customers
According to banking sources, there has been a noticeable increase in requests from NRI customers seeking temporary relief on loan repayments. These requests are primarily driven by factors such as job uncertainties abroad, delayed payments, and global economic disruptions affecting income stability.
Bank officials state that while individual restructuring may be considered in certain cases, a blanket EMI postponement or moratorium cannot be implemented without official policy direction.
Why banks cannot act independently
Under current banking regulations, any large-scale EMI deferment or moratorium must be backed by directives from the RBI or the central government. Past examples, such as the COVID-19 pandemic, saw RBI announcing a nationwide moratorium allowing borrowers to defer EMIs for a limited period .
Similarly, targeted relief measures have been introduced in specific sectors, such as exporters, where banks were permitted to offer temporary moratoriums under RBI guidelines .
However, no such general relief has been announced for retail borrowers or NRIs at present.
Limited relief options available
While a full moratorium is not currently available, banks may offer certain alternatives on a case-by-case basis, including:
- Loan restructuring or rescheduling
- Extension of loan tenure
- Temporary interest-only payment options
These measures depend on the borrower’s financial profile and the bank’s internal assessment.
Growing demand for policy intervention
With increasing representations from borrowers and industry groups, there are indications that stakeholders have approached authorities seeking broader relief measures. For instance, exporters have recently urged policymakers to extend loan moratoriums amid ongoing global disruptions .
Experts note that if economic conditions worsen or large-scale distress emerges, authorities may consider targeted relief, similar to past interventions.
Outlook
For now, NRI borrowers will need to continue servicing their EMIs or approach banks individually for restructuring options. A comprehensive EMI relief or moratorium will depend on future announcements from regulators.