Fact check: You don’t need an OTP to defer EMI payments, don’t share information with fraudsters

Cyber frauds are calling bank customers asking for OTPs to defer EMI payments. You don’t need an OTP for that, don’t share anything you get with anyone calling you

Scamsters are calling customers asking them to share OTPs with them to stop EMI payments. Both PIB Fact Check and the SBI have tweeted to warn about this. (Pixabay)

Scamsters are calling customers asking them to share OTPs with them to stop EMI payments. Both PIB Fact Check and the SBI have tweeted to warn about this. You are supposed to call your bank if you want a payment deferred, the bank is not going to call you.

To deal with the Covid-19 lockdown and economic issues that have blindsided us over the last month or more, banks across the country gave customers an option to defer their EMI payments.

The Reserve Bank of India (RBI) announced on March 27 that banks and financial institutions could offer a three-month moratorium on term loans and credit card bills. Over this period, borrowers can choose to opt to not pay their equated monthly instalments (EMIs) or credit card dues.

Most banks chose to go for the "opt-in" option, putting the onus on the borrower to take the initiative of informing the bank that they want to go for the three-month breather. If you want your EMI payment deferred, all you would need to do is to call the bank or mail them.

While the process is relatively easy, cyber fraudsters took this opportunity to make the best of it and have started calling customers asking them to share an OTP with them to defer these EMI payments.

Preying on those who are unaware, fraudsters have been siphoning off money from the accounts of all those people who were naive enough to share the OTPs. The issue has been rampant enough for the Press Information Bureau's Fact Check handle and for the State Bank of India (SBI) to tweet a warning about it:  

Beware and Be Alert of cyber frauds asking you to share OTP to defer bank EMI's.

Please note that EMI Deferment does not require OTP sharing.

Do not share your OTP! https://t.co/mOj5gqNOar

— PIB Fact Check (@PIBFactCheck) April 6, 2020

If you want to defer your payments then you need to mail the bank or call them. The bank will not call you, please remember that. If you get any call claiming to be from your bank and discussing EMI payments, please consider it as fraud.

Stay safe. Don' share your OTP with anyone.