Interest On Interest Waiver: Banks Start Crediting Accounts, Finance Ministry Issues Additional FAQs

Bloomberg Quint | Nov 5, 2020 at 12:36 AM
  • Banks have started refunding borrowers the compound interest charged on specified loan accounts during the moratorium period.
  • The scheme mandates ex-gratia payment to certain categories of borrowers by way of crediting the difference between compound interest and simple interest for the period between March 1, 2020 to Aug. 31, 2020 by respective lending institutions.
  • The finance ministry had issued the operational guidelines on Oct. 23 in the backdrop of the Supreme Court’s direction to implement the interest waiver scheme.