Lenders to be Reimbursed Rs. 974 cr. for Pandemic Loan Moratorium

The Union cabinet on Wednesday approved sanction of Rs. 973.74 crore for lenders as reimbursement related to loan moratorium that was implemented in 2020 amid the Covid-19 pandemic.

On March 27, 2020, the Reserve Bank of India (RBI) had announced a loan moratorium on payment of instalments of term loans falling due between March 1 and May 31, 2020, due to the pandemic, which was extended to August 31.

Financial and non-banking financial institutions were asked to credit the difference between compound and simple interest collected on loans of up to Rs. 2 crores during the moratorium scheme by November 30, 2020.

The cabinet approved 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 in October, 2020, envisaging an outlay of Rs. 5,500 crores”.

SBI, which was made the nodal agency for reimbursement of claims, informed the government that it received consolidated claims of Rs. 6, 473.74 crore from lending institutions.

On Wednesday, the cabinet approved the sanction of balance Rs. 973.74 crore to SBI towards reimbursement.

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *