Finally, the bank has started crediting account holders for cashback. For almost a month there was a debate going on whether or not the SC, that is the supreme court shall pass the verdict in the favour of the lenders are the borrowers. However, the supreme court has decided that there has to be no interest on interest charged for or the customers. Now that the verdict has gained grounds the bank has started crediting the amount which is reserved by the customers to their accounts. The bank loan moratorium shows a sign of cashback if a person has taken a loan of 2 crore rupees around February of this year.
The customers who have been paying interest or compound interest in this moratorium period are eligible for cashback. RBI Reserve Bank of India has thus asked all the lending institutions non-banking financial companies and other financial institutions to disburse the dissolved money to the specific account holders. This is thus known as the covid-19 a customer is eligible to receive the difference between the compound interest and simple interest of six months in specified loan accounts.
MSME loans consumer durable loans, consumer loans, credit card dues, auto loans housing loans education, loans all fall under this scheme agriculture and allied activities loans are not part of this scheme. There were operational guidelines that were issued on October 23rd by the finance ministry of India for the same. RBI and the supreme court has made it mandatory for lending institutions to follow this scheme and hence do the needful under it. Whatever amount has been disbursed by the lending institutions can later be reimbursed from the central government. This seems like a Win-Win situation for the lenders and borrowers at the same time. However, this scheme is supposed to help those businesses that have been drastically affected by the covid-19 to help them to gain ground again and support the economy better.