Cash back of the moratorium on loans: November 5, deadline for banks to credit compound interest received | Business News in India
“The central government has ordered all lending institutions to give effect to the program and credit the amount (of compound interest) calculated according to the program to the respective accounts of borrowers by November 5,” the ministry said. Finances in an affidavit.
The SC had asked the government to explain the mechanism for implementing its decision to waive interest on interest during the six-month moratorium period for those who borrowed up to 2 crore rupees, including MSMEs . The Center had said the benefit would be available to those who had taken advantage of the moratorium, paid their installments or had partially taken advantage of the benefits.
The ministry said: “Under the program, all lending institutions must credit the difference between compound interest and simple interest to the respective accounts of eligible borrowers for the period between March 1 and August 31. The amount will be credited by each of the credit institutions. under the scheme, whether these eligible borrowers have fully or partially taken advantage of or have not taken advantage of the moratorium, which is the postponement of payment of down payments.
“After having credited the said amount to the respective accounts of the eligible borrowers, the credit institutions would claim reimbursement from the central government through the nodal agency of the State Bank of India, as stipulated in the program,” he said. -he adds.
The ministry said the decision was taken after “careful consideration, keeping in mind the overall economic scenario, the nature of the borrowers, the impact on the economy and other factors such as a political decision. affecting the category of borrowers stipulated for the granting of benefits “.
To concern November 5 limit for banks to credit compound interest to borrowers: Center to SC