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.