The case of interest on interest of loan moratorium by banks is going on in the Supreme Court. According to the court’s order, the government has decided on it. Government will declare this decision in court on November 2
In the hearing on October 14, the Supreme Court had told the government – Diwali of common people, in your hands, the Supreme Court had said that you should not delay in issuing the circular and issue it soon.
Before Diwali, the central government can give gifts to crores of people. It is reported that now people taking moratorium on loan will not have to pay interest on interest. The Cabinet of the Central Government has taken such a decision. The matter is scheduled to be heard in the Supreme Court on 2 November. It is believed that the government will present its similar opinion in the court.
Union Cabinet approved
According to sources, the Union Cabinet has approved the interest waiver of interest. That is, it has got the green signal. Let us know that in the last hearing the Supreme Court had said that what will be the Diwali of the common man, it is in the hands of the government. The court had also told the government not to delay in the issue of circulars and issue it soon. Earlier in the hearing on October 14, the Supreme Court had said that the government should implement the decision on interest waiver soon.
Those who have loan outstanding from banks, they benefited from Loan Moratorium
Many petitions were filed in the Supreme Court
Many petitions were heard in the Supreme Court to protest the interest on interest during the loan moratorium received by the people. The government has already said that it will pay this interest to the banks themselves. Sources said that the Cabinet Committee on Economic Affairs (CCEA) has given a green signal to the government to pay for the relief of the ‘interest on interest’ on the moratorium. The government may have to spend 5,500 to 6,000 crores on this.
Government will pay interest money on interest
According to sources, the government will replenish the difference between the compound interest and simple interest of the outstanding loan. The government had told the Supreme Court that the compound interest applicable on 8 sectors including MSME, Education, Home, Consumer, Auto loans up to Rs 2 crore would be waived. Apart from this, this interest will not be charged on the credit card balance also.
New RBI guidelines on loan moratorium: What options do borrowers have
3 million employees received the gift
Explain that earlier, the Central Government had given a Diwali gift to 30 lakh non-gazetted employees. Under this, it was announced to give linked bonuses. This bonus will be given for the period 2019-20. A total bonus of Rs 3,737 crore will be given under this. Earlier, the government also announced a loan of 10 thousand rupees to government employees without interest. This is expected to bring one lakh crore rupees to the market.
That is, overall, the government is working on demand in the market. At the same time giving people a little relief to spend.