The Reserve Bank of India (RBI) on Tuesday asked all lending institutions to implement the recently announced interest waiver scheme for loans up to Rs 2 crore.
Under this scheme, the interest charged above the interest on loans up to two crore rupees will be waived for six months from March 1, 2020. On October 23, the government announced a grant scheme to pay the difference between compound interest and simple interest for eligible loan accounts. The government had asked all banks to deposit the difference between compound interest and simple interest in the account of the borrowers by November 5.
"All lending institutions are advised to act as directed by the provisions of the scheme and take action within the stipulated time frame," the Reserve Bank said in a notification. Finance Ministry directs the Supreme Court to implement an interest waiver scheme The operating guidelines were issued against the backdrop. The apex court had on 14 October directed the Center to implement a scheme to provide relief to the common people at the earliest in view of the COVID-19 epidemic.