The lending institution will provide ex-gratia payment to the borrower account of the difference between compound interest and simple interest on loan accounts with sanctioned limits and outstanding up to 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. The Government of India has announced a Scheme for grant of ex-gratia payment of difference between compound interest and simple interest for six months to borrowers in specified loan accounts (01.03.2020 to 31.08.2020) (the ‘Scheme’) on October 23, 2020, which mandates ex-gratia payment to certain categories of borrowers by way of crediting the difference between simple interest and … The relief shall cover the following segments – MSME Loans, Education loans, Housing Loans, Consumer … 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. The loan will entail only simple interest. The main features / highlights of the scheme are as under: ... No. 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 … The central bank’s notification has come after the government set November 5 as the deadline for banks to implement the waiver of 'interest on interest' scheme for six months. “After crediting the said amount in the respective accounts of eligible borrowers, the lending institutions would claim reimbursement from the Central government through the nodal agency of State Bank of India as stipulated under the scheme," the Centre added. The relief shall cover the following segments – … of India? 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. BP.BC.47/21.04.048/ 2019-20, dated 27.3.2020 and extended on 23.5.2020. Credit card dues are eligible for ex-gratia payment of the difference between simple interest and compound interest for the moratorium period of six months i.e March 1, 2020 till August 31, 2020. loan eligible for ex-gratia payment under the scheme? 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. Miscellaneous Activities Produce Marketing Loan Setting up of Agri Clinic and Agri Business centres Land Purchase Scheme SBI Krishak Uthan Yojna Scheme for Debt Swapping of borrowers … Gold Loan Multi Purpose Gold Loan. Yes. What is the ex-gratia payment to the borrower scheme announced by Govt. The petitioner requested the apex court that no interest should be charged during the moratorium. The contracted rate / interest rate prevailing as on 29.02.2020 which is considered for … The Ex-Gratia payment under this scheme shall be applicable if you fall under below categories: (1) had fully availed or partially availed or not availed of the moratorium on repayment announced by RBI ride its circular DOR. Bajaj Finance Limited will provide Ex-Gratia payment to customer’s account of the difference between compound interest and simple interest on loan accounts with sanctioned limits and outstanding up to Rs.2 crores (aggregate of all the borrowings/ facilities from all the banks and financial Institutions) for the period from 1st March … What is the time-period for credit/payment of ex-gratia amount by the lender? Therefore, there will be no 'interest on interest'. An ex-gratia payment will be credited to their loan accounts. Is Customer * Account Number (Maximum 16 Words) * Name of Complaint * E-Mail : Zone Code. Mobile No. Ex-gratia will not be paid on those credit cards where balance is in “credit” as on 29.02.2020. Grant of Ex-gratia Scheme to borrowers. 2 crores (aggregate of all the borrowings/facilities from all the banks and financial Institutions) for the period from 1st March 2020 to 31st August 2020 (6 months / 184 days). 14. Will I be eligible for relief if my credit card balance is in “Credit” as on 29.02.2020? This is between compound interest and simple interest for six months to borrowers in specified loan accounts (1.3.2020 to 31.8.2020). Allied Activities Dairy Loan Poultry Loan Fisheries Loan. Many users feel that the bank has made a mistake […] The central government will incur an additional liability of Rs 6,500 crore for the implementation of the scheme. Scheme of ex gratia payment of difference between compound interest and simple interest ..” Scheme for grant of ex gratia payment of difference between compound interest and simple interest for six months to borrowers in specific loan accounts . What does interest waiver for your credit card dues mean | Photo Credit: Thinkstock . Photo: iStock Paid credit card bills on time? 2 cr. Tractor loans are excluded from this ex-gratia scheme. Ex-Gratia Payment Scheme. Kisan Credit Card. No. Meanwhile, loans taken for agriculture and related sectors will not get the ex-gratia. No, this Ex-gratia scheme is in the form of grant of interest on interest in the specified loan account category, irrespective of whether moratorium benefit was extended/availed … Banks are paying credit card customers who had an outstanding bill amount as on 29 February Some diligent credit card customers were surprised … However, in the case of credit card dues, the government has clarified that the outstanding as on February 29 will be eligible for relief. Ex-Gratia Payment Scheme. (aggregate of all facilities with all the lending institutions, excluding Non-Fund based facilities) as on February 29, 2020 are eligible. Ex-Gratia Scheme Payment of differential interest of 6 months To bring financial relief to borrowers in the view of Covid-19 situation, RBI along with Department of Financial services has introduced a "Scheme for grant of ex gratia payment of difference between compound interest and simple interest for six months to borrowers in specified loan accounts." 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. 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. 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. loan eligible for ex-gratia payment under the scheme? Timelines for Credit Decisions; Base Rate & BPLR ; Queries ; GRIEVANCE PORTAL FOR SCHEME FOR GRANT OF EX-GRATIA PAYMENT Fields marked with * are mandatory. loan eligible for ex-gratia payment under the scheme? Considering the Covid 19 Pandemic, the Reserve Bank of India has initiated the Ex Gratia Payment Scheme. So, at that time, a petition was filed in this regard in the Supreme Court. 6 months period / 184 days. 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? Format For Submission Of Information By Lending Institutions; Statutory Auditor Certificate Consumer Durable Loans, Credit Card Dues, Automobile loans, Personal loans to Professionals and Consumption loans. Borrowers who have loan accounts with sanctioned limits and outstanding amount not exceeding Rs. d. The period reckoned for refund shall be from 01-03-2020 to 31-08-2020, i.e. While credit card dues come under the scheme, loans against fixed deposits and bonds are not eligible, the department has clarified. What does interest waiver for your credit card dues mean | Photo Credit: Thinkstock 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. | The Newshour Debate, India’s GDP in negative; Will we achieve PM Modi’s Aatmanirbharta target? RBI issues direction for ex-gratia payment of interest on interest to lenders  |  Photo Credit: Getty, COVID vaccine rollout announced; Dry-runs proved successful? Loan accounts must be standard as of February 29, 2020. Loans for consumption purposes (e.g., social ceremonies, etc.) New Delhi: Agriculture and allied activity loans are not eligible for the interest on interest waiver announced by the government last week, the finance ministry has clarified. Ex-gratia will not be paid on those credit cards where balance is in “credit” as on 29.02.2020. Thereafter, the lender can claim reimbursement from the govt by December 15. Yes. Updated: 09 Nov 2020, 05:21 PM IST Tinesh Bhasin. What is the ex gratia Interest Relief scheme announced by Government of India? All lending institutions are advised to be guided by the provisions of the Scheme and take necessary action within the stipulated timeline.". EX Gratia Scheme of Govt of India: Credit card holders are getting good news these days. Credit card dues are eligible for ex-gratia payment of the difference between simple interest and compound interest for the moratorium period of six months i.e March 1, 2020 till August 31, 2020. 15. 2 crores (aggregate of all the borrowings/ facilities from all the banks and financial Institutions) for the period … Designed, Developed & Maintained By Daksham, Petrol price at all-time high, diesel crosses Rs 81 in Mumbai, Jack Ma's disappearing act fuels speculation about billionaire's whereabouts, Government launches crackdown on 7,000 GST evaders, 187 arrested, Mahatma’s assassination delayed Hindutva supremacy by two generations: Sitapati, ​Mutilation of J&K: A year of legal upheaval, Mutilation of J&K: Kashmir's journalists refuse to be stenographers, The Covid-19 pandemic has hit the fashion industry hard, First person: When there's gunfire outside, switch off the lights and wait for dawn, Mumbai malls to reopen but the vibe will be odd, For Vangani's visually impaired people, lockdown spells doom. Loans like education loan, credit card dues, automobile loans, MSME loans, housing loans, personal loan, consumption loan and professional loans are eligible under this scheme. (Maximum 10 Words) * Complaint Details; Category of Complaint * Type of Loan * Please give brief details of your … New Delhi: In a major relief for borrowers, the finance ministry on Saturday approved a waiver of interest on interest or … 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. 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. Housing … | The Urban Debate, BJP General Secy Kailash Vijayvargiya on Bengal elections, President’s rule & More | Frankly Speaking, Bhandara Hospital tragedy reflects dereliction; Will justice be served? So, even if someone has not opted for loan moratorium, they will be eligible under this scheme. The government on October 23 had announced the scheme for grant of ex-gratia payment of difference between compound interest and simple interest for … What are the main features of the ex gratia to borrowers scheme? Loans for consumption purposes (e.g., social ceremonies, etc.) The payable ex-gratia amount shall have to be credited to the account of the borrower by the respective lending institutions as ex-gratia payment under the scheme on or before 5.11.2020. In view of the unprecedented and extreme COVID-19 situation, the object of the Scheme is to provide ex-gratia payment of difference between compound interest and simple interest by ways of relief for the period from 1st March 2020 to 31st August 2020 to borrowers in specified loan accounts. 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 … You may still get ex-gratia payment 3 min read. 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 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 simple interest and compound interest for the period between March 1, 2020, to August 31, 2020, by respective lending institutions. New Delhi: Agriculture and allied activity loans are not eligible for the interest on interest waiver announced by the government last week, the finance ministry has clarified. Ex Gratia Payment. Loans for consumption purposes (e.g., social ceremonies, etc.) An ex-gratia payment will be credited to their loan accounts. Loans for consumption purposes (e.g., social ceremonies, etc.) 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. Here are the FAQs. No. Although the scheme includes all categories of loans, those who had availed a moratorium on credit card dues are expected to benefit the most from this interest waiver scheme. The Government of India has announced a Scheme for grant of ex-gratia payment of difference between compound interest and simple interest for six months to borrowers in specified loan accounts (01.03.2020 to 31.08.2020) (the ‘Scheme’) on October 23, 2020, which mandates ex-gratia payment to 2/12/2020-BOA.I) issued by the Department of Financial Services of the Ministry of Finance, Government of India on October 23, 2020 on the unprecedented and extreme COVID-19 situation, the … However, there was ambiguity on whether interest on interest during this moratorium period would be charged. 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. The scheme mandates the ex-gratia payment to specific borrowers’ categories by crediting the difference between simple interest and compound interest between March 1, 2020, to August 31, 2020 , by the respective lending institutions. To read the scheme announced by the Government of India (GoI), Ministry of Finance (vide no. ... on its scheme to provide ex gratia … The accounts should be standard as on February 29 and not under default The scheme will be valid for borrowers who availed the moratorium fully, partially or not at all. Note that in an early Diwali gift to borrowers, the Finance Ministry last week approved guidelines for the scheme for grant of ex-gratia payment of the difference between compound interest and simple interest for six months of loans up to Rs 2 crore. Ex-gratia of Rs. Loan accounts should be Standard in the books of the lending institutions as on 29.02.2020. 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. Please note, Automobile Loans refers to all Vehicle Loans. “All lending institutions are advised to be guided by the provisions of the Scheme and take necessary action within the stipulated timeline,” said the RBI in the notification. The bank/ lending institution will provide ex-gratia payment to the borrower account of the difference between compound interest and simple interest on loan accounts with sanctioned limits and outstanding upto Rs. 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 (01-03-2020 to 31-08-2020) (the ‘Scheme’) on 23-10-2020, which mandates ex-gratia payment to certain categories of borrowers by way of crediting the difference between simple interest and compound interest … The Government of India has announced a Scheme for grant of ex-gratia payment of difference between compound interest and simple interest for six months to borrowers in specified loan accounts (01.03.2020 to 31.08.2020) (the ‘Scheme’) on October 23, 2020, which mandates ex-gratia payment to certain categories of borrowers by way of crediting the difference between simple interest and … Issuing additional frequently asked questions (FAQs) on the 'scheme for grant of ex-gratia payment of difference between compound interest and simple interest', it said credit card dues outstanding as on February 29 would … ... NBFC, housing finance company, credit card issuer) to avail the benefit. Credit card … The RBI had in March, after the outbreak of coronavirus, provided a moratorium on repayment of EMIs and credit card dues for three months.Later, the central bank extended that three-month period till August 31, 2020. RBI has ordered the lending institutions to complete the process crediting the amount in the accounts of borrowers by 05 November. 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 … What will be the treatment of penal interest/ penalties while arriving at the rate of interest? The Government of India has announced a scheme for grant of ex-gratia payment. 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