Decision to waive compound interest must be implemented by November 2: SC

The government’s decision to forgo compound interest payments for small borrowers during the six-month moratorium period is expected to be implemented by Nov. 2, the Supreme Court said on Wednesday, according to multiple media outlets.

The government’s decision is welcome, but we must see concrete results on the ground, the court said, setting Nov. 2 as the next hearing date on the case, according to CNBC-TV18.


The Centre’s decision to fund the compound interest payment will cost Rs 6,500 crore, a senior government official told Business Standard earlier this week.

The Supreme Court is hearing a request to waive interest charged by banks on payments deferred by the Reserve Bank of India under a six-month moratorium imposed in March.

The government has told the Supreme Court that it is ready to shoulder the burden of waiving compound interest for any person or entity whose loan amount is less than Rs 2 crore, whether or not it has received a moratorium. on loan repayment. However, he had not indicated the financial implications which will also involve the sponsorship of compound interest of borrowers belonging to private lenders.

In addition, the Ministry of Finance will soon submit to the Cabinet of the Union proposals for the creation of a development finance institution and a new policy on public sector enterprises, said the government official quoted below. above, without going into too much detail.

Dear reader,

Business Standard has always strived to provide up-to-date information and commentary on developments that matter to you and have broader political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering has only strengthened our resolve and commitment to these ideals. Even in these difficult times resulting from Covid-19, we remain committed to keeping you informed and updated with credible news, authoritative views and cutting edge commentary on relevant current issues.
However, we have a demand.

As we fight the economic impact of the pandemic, we need your support even more so that we can continue to provide you with more quality content. Our subscription model has received an encouraging response from many of you who have subscribed to our online content. More subscriptions to our online content can only help us achieve the goals of providing you with even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital editor


Source link

Comments are closed.