NThe difference between normal interest and Compunding Interest charged by banks on loan Moratorium taken by people at the time of lockdown will be cashback in the accounts till November 5. The Central Government has informed the Supreme Court about this. The Finance Ministry has said that after depositing this amount in the accounts of the borrowers, banks will claim the payment of this amount from the central government.
The government filed an affidavit The government has said in an affidavit filed in the apex court that the ministry has released a scheme according to which the lending financial institutions took this loan during the six-month loan suspension period due to Kovid-19. Deposit in the person’s accounts. The affidavit states that under this scheme, all lending institutions will deposit the difference between compounding and normal interest in the accounts of all eligible borrowers for the period between March 1, 2020 to August 31, 2020.
The central government has directed that all the lending institutions mentioned in clause 3 of the scheme should implement it and according to the plan, deposit the calculated amount for their respective borrowers in their accounts. This affidavit has been filed in the petitions filed on various issues related to the circulars dated March 27 and May 23, 2020, including recovery of compound interest on the loan amount during the period of loan suspension.
The affidavit states that after careful consideration, this decision has been taken keeping in mind the entire financial situation, the condition of borrowers, its impact on the economy and other such aspects. On October 14, the court had told the Center that under the loan moratorium scheme of the Reserve Bank, it should act as soon as possible on the waiver of interest for the borrowers up to two crore rupees as the common man’s Diwali is in his hands.
On the last hearing, the apex court sought to know from the Center whether the benefit of interest waiver will reach the common man on the loan of up to two crore rupees during the period of loan suspension. The court said that its concern is about how the benefit of interest waiver will be given to the borrowers. The court said that the Center has taken a ‘welcome decision’ keeping in view the situation of the common man, but the authorities have not yet issued any order in this regard.
Earlier, the central government had informed the court that it has been decided to waive the compound interest of the borrowers up to Rs 2 crore for the loan installment moratorium for six months. The Reserve Bank had also said in an affidavit filed in the court on October 10 that extending the postponement beyond the period of six months could lead to a ‘complete end of loan discipline’ and hence the process of loan creation in the economy Will have the opposite effect.