Please mark the words RBI used in the press release. They said it is left to the discretion of the individual banks, which means each bank has to take a decision in this regard and it is not a dictate from RBI. Therefore, Borrowers have to wait for the specific communique from the bank where they took the loan.
Further, what I feel is that the payment of EMI is suspended for three months which exactly means what is mentioned. The borrower need not pay the instalments for March, April and May and that is all. Interest shall be calculated as per applicable rate on the liability outstanding for these three months. The only difference is that in the normal course if the EMI is not paid, banks charge penal interest for the overdue amount till it is paid. In this particular case, no such overdue interest shall be charged for these three EMIs. The borrower has to resume payment of EMIs after three months and accordingly the overall payment of loan shall be extended by three months. This is my understanding.