Mumbai: The Reserve Bank of India has been asked to teh banks to take measures step to credit the "interest on interest" collected on loans of up to ?2 crore during the moratorium scheme by 5 November.
This above statement has been also stated to the Supreme Court of India by the Reserve Bank of India. "All Primary (Urban) Cooperative Banks/State Cooperative Banks/District Central Cooperative Banks, All All India Financial Institutions and All Non-Banking Financial Companies (including Housing Finance Companies) to be guided by the provisions of the scheme and take necessary actions within the stipulated timeline therein," the RBI said in its recent affidavit.
Earlier, the central government mentioned that the lenders have been asked to credit into the accounts of eligible borrowers the difference between compound and simple interest collected on loans of up to ?2 crore during the RBI's loan moratorium scheme by 5 November. After crediting this amount, the lending institutions will claim reimbursement from the central government,
An affidavit also filed by the RBI in the apex court saying that loan moratorium exceeding six months might result in "vitiating the overall credit discipline", which will have a "debilitating impact" on the process of credit creation in the economy.
Posted Date : 02-11-20
Categories : BANK NEWS