RBI notifies banks to follow provisions of Centre's interest scheme

All lending institutions are advised to be guided by the provisions of the Scheme and take necessary action within the stipulated timeline, the RBI said.

Oct 27, 2020 11:10 IST India Infoline News Service

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The Government of India has announced the Scheme for grant of ex-gratia payment of the difference between compound interest and simple interest for six months to borrowers in specified loan accounts (1.3.2020 to 31.8.2020) (the ‘Scheme’) on October 23, 2020.

The central bank said it mandates ex-gratia payment to certain categories of borrowers by way of crediting the difference between simple interest and compound interest for the period between March 1, 2020, to August 31, 2020, by respective lending institutions.

All lending institutions are advised to be guided by the provisions of the Scheme and take necessary action within the stipulated timeline, the RBI said.

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