Government To Give A Check To The Interest Pay-back To The Borrowers
On Sunday Apex court was informed by RBI that all the financial institutions, banks, non-banking financial institutions, financial companies, to strictly follow all the guidelines issued by the government. The government has said that all the borrowers need to be paid with their interest on interest, which was charged during the moratorium period which is from 1st March to 31st August.
On October 23 when the Ministry of Finance approved the Ex-Gratia payment scheme in which all the borrowers need to be credited with the difference between simple interest and compound interest. Just after 3 days, RBI issued a short affidavit said that its circular has been issued on
October 26th. In the scheme, all those eight categories borrowers have included whose loans are worth up to 2 crores. The RBI has also advised all the government banks, private banks, non-banking financial institutions need to strictly follow the guidelines given by the government. It has advised all the commercial banks, rural banks, regional rural banks, co-operative banks, all the financial institutions, all the non-banking financial institutions, to adhere to the guidelines and implement all the actions within the given timeline.
The main motive of this scheme is to provide financial relief to all the borrowers who are financially a lot affected by the pandemic. It will be covering the education loans, MSME loans, credit card bills, two-wheeler loans, consumer loans, consumer durables loan.
The government has also directed all the banking institutions, non-banking financial institutions. to credit the borrower’s account by November 5. This should be done by each banking institution irrespective of the borrowers availed the moratoriums in the payment. In the last court hearing of court which was held on October 14, it is still a doubt whether the relief will be provided to the cash borrowers or not.