Regulatory Alerts2020-05-07 | 29645Treatment of Payment Deferrals or “Skipped Payments” Due to COVID-19 Measures
The Banking Sector regulator issued this directive to standardize the handling of payment deferrals, or “skipped payments,” granted to borrowers affected by COVID-19 measures. It requires financial institutions to establish clear eligibility criteria, standardized application procedures, and consistent reporting frameworks for these temporary suspensions. The guidelines mandate transparent communication with customers and ensure that deferred payments do not negatively impact credit ratings or incur excessive penalties.
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