(Harleen Kaur, Intern Journalist)
New Delhi Giving gifts during the festive season, the Finance Ministry has issued a guideline for interest rebate on interest during the loan moratorium period. Under this, during the first loan moratorium period from March to August 31, the interest charged on interest from loan customers up to Rs 2 crore will be refunded.
The Supreme Court, while hearing in this case, asked the government to take steps as soon as possible. According to the guidelines issued by the Department of Financial Services, such borrowers, whose total loan was less than Rs 2 crore as of February 29, will be exempted. This scheme is for MSMEs and personal loans. The amount recovered as interest on interest from customers during the moratorium period will be returned by banks to their account.
The government will compensate for this. The government will incur a burden of Rs 6,500 crore in this scheme. Hearing the case on October 14, the Supreme Court had said that the government has taken a good decision keeping the general public in mind, but no order has been issued in this regard so far. Some concrete steps should be taken in this direction.
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