Question : Union Cabinet has recenlty approved Scheme for grant of ex-gratia payment of difference between compound interest(CI) and simple interest(SI) to borrowers in specified loan accounts. Accordingly, which of the following statement/s is/are correct ?
Staements —
- The difference between CI and SI for six months(1.3.2020 to 31.8.2020) is considered.
- Union Cabinet was chaired by PM.
- The payment of ex-gratia amounting to Rs.973.74 crore has been approved.
Options
a. Only 1.
b. Only 2.
c. Only 3.
d. All of the above
Ans. d.
Related facts
- The Union Cabinet chaired by Hon’ble Prime Minister Shri Narendra Modi has recently(January 2022) approved the payment of ex-gratia amount of Rs. 973.74 crore pertaining to remaining claims submitted by Lending Institutions (LIs) under 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).
Benefits:
- By granting ex-gratia payment of difference between compound interest and simple interest during the six month moratorium period to distressed/vulnerable category of borrowers, irrespective of whether the borrower had availed of moratorium or not, the scheme would equitably help small borrowers bear the stress on account of the pandemic and get back on their feet.
- Operational guidelines for the scheme are already issued with the approval of the Cabinet.
- It is noteworthy that “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)” was approved by the Cabinet in October, 2020, envisaging therein an outlay of Rs 5,500 crore.
- This was in context of COVID-19 pandemic. SBI is the nodal agency under this scheme.
- SBI has disclosed that it has received consolidated claims of Rs 6,473.74 crore approx from lending institutions.
- As Rs 5,500 crore has already been disbursed to SBI, approval of the Cabinet is now being sought for balance amount of Rs 973.74 crore.
- Following category of borrowers were eligible for ex-gratia payment under the scheme:—
- MSME loans up to Rs. 2 crore
- Education loans up to Rs. 2 crore
- Housing loans up to Rs. 2 crore
- Consumer durable loans up to Rs. 2 crore
- Credit card dues up to Rs. 2 crore
- Auto loans up to Rs. 2 crore
- Personal loans to professionals up to Rs. 2 crore
- Consumption loans up to Rs. 2 crore
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