This supreme court was informed that Rs.5270 crore was credited to 13.12 bank accounts as interest waiver, The compound interest was subsided by the centre for 6 months, it included all the loans for 6 months up to 2 crores. Mehta mentioned in the report that the people who were defaulters even before COVID would not be benefiting from the exemption. This was only to bring down the stress in various sectors.
Mehta assured that they have done their best with the Disaster Management Authority. In order to prevent the companies from going into bankruptcy, the IBC process has been suspended since March. It will be ensured that. Credit card users will not be given any benefits of the interest waived.
The report of the Kamath Committee had given a separate mechanism for small loans by the lending institution had already existed. It was confirmed by Mehta that this will also be applicable to lending greater than Rs.1,500 crores. The centre also made submissions seeking waiver of interest as per the pandemic going on.