1.3.2020 to 31.8.2020, to the eligible borrowers in specified loan accounts, click here To read the detailed FAQs of the scheme, click here … The government had asked the lending institutions to complete the exercise of crediting the amount in the accounts of borrowers by November 5. Scheme for grant of ex-gratia payment of interest differentials for six months. Scheme for grant of Ex-gratia payment of difference between compound interest and simple interest for six months to borrower in specified loan accounts (01.03.2020 to 31.08.2020) (2.85 MB) FAQ on COVID-19 Ex-gratia to borrowers for difference in interest dated 26.10.2020. Credit card … In view of the unprecedented and extreme COVID-19 situation, the object of the Scheme is to provide ex-gratia payment of the difference between compound interest and simple interest by … To read the scheme announced by the Government of India (GoI), Ministry of Finance (vide no. 2 crores (aggregate of all the borrowings / facilities from all the banks and financial Institutions) for the period from 1st March … The notification said, "The Government of India has announced the Scheme for grant of ex-gratia payment of difference between compound interest and simple interest for six months to borrowers in specified loan accounts (1.3.2020 to 31.8.2020) (the ‘Scheme’) on October 23, 2020, which mandates ex-gratia payment to certain categories of borrowers by way of crediting the difference between … As per the policy decision of the Central Government, this scheme mandates ex-gratia payment to the classes of borrowers mentioned in clause 4 above by way of crediting the difference between simple interest and compound interest for a period between 1.3.2020 to 31.8.2020 by respective lending institutions mentioned in clause 3 above. Allied Activities Dairy Loan Poultry Loan Fisheries Loan. Grant of Ex-gratia Scheme to borrowers. As per the operational guidelines issued by Department of Financial Services, the scheme can be availed by borrowers in specified loan accounts for a period from March 1 to August 31, 2020. Under the ex-gratia scheme of government, any loan of up to Rs 2 crore taken before February 29, 2020 will not be charged with compound interest from March 1 to August 31, 2020. So, at that time, a petition was filed in this regard in the Supreme Court. Main features of the ex gratia payment Scheme: Loan accounts with sanctioned limits and outstanding not exceeding Rs.2 crores (aggregate of all facilities with all the lending institutions) as on 29.02.2020. Ex-gratia scheme Scheme for grant of ex-gratia payment of difference between compound interest and simple interest for six months to borrowers in specified loan accounts (1.3.2020 to 31.8.2020) As per letter (F. No. 2 crores (aggregate of all the borrowings/ facilities from all the banks and financial Institutions) for the period … What is the ex-gratia payment to the borrower scheme announced by Govt. The main features / highlights of the scheme are as under: ... No. Loan accounts must be standard as of February 29, 2020. While credit card dues come under the scheme, loans against fixed deposits and bonds are not eligible, the department has clarified. The central government will incur an additional liability of Rs 6,500 crore for the implementation of the scheme. Scheme for grant of Ex-gratia payment of difference between compound interest and simple interest for six months to borrower in specified loan accounts (01.03.2020 to 31.08.2020) (2.85 MB) FAQ on COVID-19 Ex-gratia to borrowers for difference in interest dated 26.10.2020. The scheme mandates ex-gratia payment to certain categories of borrowers by way of crediting the difference between simple interest and compound interest for the period between March 1, 2020 to August 31, 2020 by respective lending institutions. New Delhi: The Reserve Bank of India (RBI) issued direction on Tuesday to all lending institutions to implement provisions of Scheme for grant of ex-gratia payment of difference between compound and simple interest for six months to borrowers in specified loan accounts (1 March to 31 Aug) and take necessary action within the stipulated time. Therefore, there will be no 'interest on interest'. New Delhi: In a major relief for borrowers, the finance ministry on Saturday approved a waiver of interest on interest or … Kind of Loans and Borrowers Eligible for the Ex – Gratia Relief Scheme The scheme is eligible for those borrowers, who have taken loans before February 29, this year, and the compound interest charged from March 1, 2020, to August 31st, 2020, will get waived off. of India? The petitioner requested the apex court that no interest should be charged during the moratorium. The Ex-Gratia Payment Scheme is the payment of the difference between the Compound Interest and the Simple Interest for six months ending 31 August 2021 to borrowers in specified loan accounts. Format For Submission Of Information By Lending Institutions; Statutory Auditor Certificate No. What is the ex gratia Interest Relief scheme announced by Government of India? Even if the loan has ended by now, the borrower will get pro-rata benefit for the period it was active between March 1 and August 31. However, in the case of credit card dues, the government has clarified that the outstanding as on February 29 will be eligible for relief. They are getting a message from the card issuing bank or institution these days that the money has been deposited in their account of the government’s EX Gratia Scheme. 2 cr. So, even if someone has not opted for loan moratorium, they will be eligible under this scheme. An ex gratia payment is made to an individual by an organization, government, or insurer for damages or claims, but it does not require the admittance of liability by the party making the payment. The Ex-Gratia Scheme was established in recognition of the UK Government’s gratitude for the service of Afghan interpreters, rather than any risk they may face. Does this Ex-gratia Scheme mean that no-interest will be charged by the banks for the period of Mar 1, 2020 till Aug 31, 2020 on eligible loan accounts? Yes, the Ex-gratia Scheme clearly specifies that all the eligible loan accounts, whether moratorium benefit is completely availed, or partially availed, or not have been availed at all shall be eligible for ex-gratia payment under the scheme. Ex-Gratia Payment Scheme. Consumer Durable Loans, Credit Card Dues, Automobile loans, Personal loans to Professionals and Consumption loans. Banks are paying credit card customers who had an outstanding bill amount as on 29 February Some diligent credit card customers were surprised … The loan will entail only simple interest. Housing … Ex-Gratia On Loan Moratorium Applicable For All At the start of this month, some credit card providers surprised their customers as they credited the government’s ex-gratia money to … Ex-gratia of Rs. are also eligible for coverage under the scheme, besides other specified categories of loans like consumer durables, automobiles, education, credit card dues, housing and personal loans to professionals. 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