");googletag.cmd.push(function(){googletag.defineOutOfPageSlot('/6516239/outofpage_1x1_desktop','div-gpt-ad-1490771277198-0').addService(googletag.pubads());googletag.pubads().enableSyncRendering();googletag.enableServices();}); The tab that the government will pick-up for such concession is estimated at about Rs 7,500 crore, according to CRISIL’s analysis. 6. A Non-Banking Financial Company— Micro Finance Institution should be a member of a Self-Regulatory Organisation (SRO) recognised by RBI. Non fund based limits will not be included for arriving at the eligibility. BP.BC.47/21.04.048/2019-20, dated 27.3.2020 and extended on 23.5.2020. No Interest Rebate on Credit Card During the hearing in the Supreme Court, Tushar Mehta, who is appearing for the Central Government, said that the credit card user will also get ‘Ex-Gratia’. Such borrowers are eligible for refund of differential interest from 1st March 2020 upto the date of closure of account (not later than 31st August 2020). 2. The relief will come to borrowers in the form of grant of ex-gratia payment of difference between compound interest and simple interest for six months (from March 1 to … (3) Credit card dues — The rate of interest shall be the Weighted Average Lending Rate (WALR) charged by the card issuer for transactions financed on EMI basis from its customers during the period from Pt March 2020 to 3Pt August 2020. Yes, the accounts classified as SMA-0, SMA-1 and SMA-2 as on 29th Feb 2020 are eligible for the relief package. Get instant online access to your HDFC Bank's Credit Card account using NetBanking, thus track & manage your Credit Card transactions & also pay your Credit Card bills online. Consumption loans. The lending institutions have been asked to complete the exercise of crediting the amount in the accounts of borrowers by November 5. It was supposed to be released by 5th Nov. BP.BC.47/21.04.048/2019-20, dated 27th March 2020 and extended on 23rd May 2020. The Government of India has announced 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 (1.3.2020 to 31.8.2020) (the ‘Scheme’) on October 23, 2020, which 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. When I called the customer care, they didnt have a clue. BP.BC.47/ 21.04.048/2019-20, dated 27th March 2020 and extended on 23rd May 2020. How can I flag my grievances related to the relief package? No. Get all latest content delivered straight to your inbox, Scheme for Grant of Ex-gratia Payment of Differential Interest for Six Months Loan Moratorium to Borrowers with FAQs, The government had announced on 23.10.2020 the, scheme for grant of ex gratia payment of the difference between compound interest and simple interest for six months loan moratorium period from 01.03.2020 to 31.08.2020 to borrowers in specified loan accounts. Last Friday, the government had announced 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. Yes, provided that the sanctioned and outstanding amounts do not exceed Rs. This could have posed significant challenges for the government as well as the financial sector. Whether commercial vehicle automobile loans of individuals are covered under the scheme? 19. Abhijit Lele | Mumbai Last Updated at October 26, 2020 18:07 IST. Any debits / credits which are not reflected in the account will not be eligible/ will be excluded. The Ex-Gratia Payment Scheme is the payment of the difference between the Compound Interest and the Simple Interest for six months ending 31 August 2021 to borrowers in specified loan accounts. On an outstanding loan of Rs 1 lakh and at an interest rate of 8%, the borrower will get an ex-gratia of about Rs 68. 2 crore [aggregate of all facilities with lending institutions] as on 29.2.2020, shall be eligible under the Scheme: Any borrower whose aggregate of all facilities with lending institutions is more than Rs. Whether Accounts categorised as SMA-0, SMA-1 and SMA-2 are eligible to avail the benefit of the package? 9. No. 8. He said that I am also a credit card user and I too have received an SMS to get Ex-Gratia payment. Automobile loans including two-wheeler loans are eligible under the scheme. Further, the government has issued two clarificatory, FAQs on 26.10.2020 and 29.10.2020 on COVID-19 ex-gratia to borrowers for the difference in interest, 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), (iii) The ex-gratia payment under this scheme shall be admissible irrespective of whether the borrower in sub-clause (1) had fully availed or partially availed or not availed of the moratorium on repayment announced by RBI. 2/12/2020-BOA.I, 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). Such loans account for more than 40 per cent of systemic credit. The Top Court, Hon’ble Supreme Court is hearing a batch of petitions that raised issues concerning the six months loan moratorium period announced due to the COVID-19 pandemic. 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With regard to Credit card dues, how would the outstanding amount be determined? on October 23, 2020, which 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. 5. 13. Claims shall be submitted to designated officer(s) / cell at the State Bank of India (SBI). New Delhi: Earlier this month, all lending institutions were asked to implement provisions of Scheme for grant of ex-gratia payment of the difference between compound and simple interest for six months to borrowers in specified loan accounts (1 March to 31 Aug). What is the ex gratia payment to the borrower under the scheme announced by GoI? 2. 2 crores (aggregate of all the borrowings / facilities from all the banks and financial Institutions) for the period from 1st March 2020 to 31st August 2020 (6 months / 184 days). Chief Executive, Indian Banks' Association, 5. 1 Credit card issuers typically rely on a range of rates for financing on EMI basis. Automobile loans 7. Your support through more subscriptions can help us practise the journalism to which we are committed. The period to be reckoned for crediting of difference between compound interest and simple interest by the lending institutions mentioned in clause 3 above to eligible borrowers as per clause 4 above would be from 1.3.2020 to 31.8.2020 (six months / 184 days). (2) Consumer durable loans — The rate of interest to be applied for calculating the difference between simple and compound interest shall be the contracted rate as specified in loan agreement/ documentation. Credit card interest waiver In the case of credit card dues, the interest rate will be the weighted average lending rate (WALR) charged. For cash credit (CC) / overdraft (OD), while the contracted rate of interest would similarly apply, the basis of calculation for simple and compound interest would differ as explained below. The outstanding as on 29.02.2020 will be the reference amount for calculating the differential. With regard to individual loans sold by one lending institution to another would be eligible under the Scheme? It will be credited to your savings/ current account and if you do not maintain any such account with the lending institution, you can advise the lending institution the details of the account in other banks where the amount can be credited /remitted to. Hero Fincorp Ltd. will provide ex gratia payment to the customers account of the difference between compound interest and simple interest on loan accounts with sanctioned limits and outstanding upto Rs. This will make the approach uniform for all borrowers, irrespective of whether they have fully availed or partially availed or not availed of the moratorium on repayment of the respective loans as announced by the RBI. The bank/ lending institution will provide ex-gratia payment to the borrower account of the difference between compound interest and simple interest on loan accounts with sanctioned limits and outstanding upto Rs. Ex-Gratia On Loan Moratorium Applicable For All. Interpretation and removal of difficulties. 10. The payable ex-gratia amount shall have to be credited to the account of the borrower by the respective lending institutions as ex-gratia payment under the scheme. Eligible accounts foreclosed during the said period are covered under the scheme. While the waiver will offer a modicum of relief in terms of cash flows, repayment discipline among borrowers after the moratorium ended – and thus medium-term delinquencies at banks and NBFCs – will bear watching, it added. HDFC Bank 1426.70 (+0.76%) HDFC Life 713.75 (+2.57% ... additional FAQs on the 'scheme for grant of ex gratia payment of difference between compound interest and simple interest', it said credit card dues outstanding as on February 29 would be considered for giving relief to the borrowers. 2 crore [aggregate of all facilities with lending institutions] as on 29.2.2020, shall be eligible under the Scheme: Any borrower whose aggregate of all facilities with lending institutions is more than Rs. 2 crores (aggregate of all the borrowings/facilities from all the banks and financial Institutions) for the period from 1st March 2020 to 31st August 2020 (6 months / 184 days). For accounts closed during the said period, the period for crediting would be from 1st March 2020 and restricted to the date of closure of such account. Credit card interest waiver. 4. Who will finalise the list of eligible accounts? 3. 4. No. New Delhi: Agriculture and allied activity loans are not eligible for the interest on interest waiver announced by the government last week, the finance ministry has clarified. Get all latest content delivered straight to your inbox. A salaried employee/self-employed professional had availed of a personal loan from bank which has some amount outstanding as on 29th February 2020. Topics Banks borrowings. Whether “partly disbursed loans” are covered under the relief package? For the purpose of claiming of reimbursement by the lending institutions covered under this scheme, the compounding of interest shall be reckoned on monthly basis, except where the contrary is specified. Whether eligible accounts foreclosed during the period of 1.3.2020 to 31.8.2020 are covered under the scheme? (1) Each of the lending institutions referred in clause 3 above shall put in place a grievance redressal mechanism for the eligible borrowers for redressal of their grievances arising out of the present scheme within one week from the date of issuance of these scheme guidelines, at appropriate level(s). Whether borrowers who have opted for deferment of Interest and Instalment under the RBI COVID 19 relief package earlier are eligible to avail the benefit under the above relief? All lending institutions are advised to be guided by the provisions of the Scheme and take necessary action within the stipulated timeline. (1) Lending institutions can lodge their claim for reimbursement latest by 15th December 2020 only after crediting amounts as aforesaid. As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. The Bank / lending institution will provide ex-gratia payment to the borrower account of the difference between compound interest and simple interest on loan accounts with sanctioned limits and outstanding up to INR 2 crores (aggregate of all the borrowings / facilities from all the banks and financial Institutions) for the period from 01-03-2020 to 31-08-2020 (6 months / 184 days). Issues and concerns relating to claims submitted by the lending institutions shall be handled through the designated cell at SBI in consultation with Government of India. Q1. The undersigned is directed to convey that in view of the unprecedented and extreme COVID-19 situation, the Central Government has approved "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)". The main features / highlights of the scheme are as under: a. 2 crore (sanctioned limits or outstanding amount) will not be eligible for ex-gratia  payment under this scheme. (3) Grievances, if any, of the lending institutions shall be resolved through the designated cell at the State Bank of India in consultation with the Ministry of Finance, Government of India. What will be the treatment for the repayments / credits made in term loan/ demand loan during the period from 1st March 2020 to 31st August 2020? What is the ex gratia payment to the borrower under the scheme announced by GoI? All Commercial Banks (including Small Finance Banks, Local Area Banks and Regional Rural Banks), All Primary (Urban) Co-operative Banks/State Co-operative Banks/ District Central Co-operative Banks, All Non-Banking Financial Companies (including Housing Finance Companies). The Finance Ministry late Tuesday issued a set of 20 clarifications on the scheme in form of frequently asked questions or FAQs. While making the calculation repayments in the loan account during the period to be reckoned will be ignored. How will the interest be calculated for cash credit/ overdraft accounts? Any repayment / credits subsequent from 01.03.2020 – 31.08.2020 shall be ignored for the purpose of calculation. var aax_pubname = 'sujit081-21'; The aforesaid exercise of crediting the amount as stated above in the respective accounts of the eligible borrowers described in paragraph 2 above by the respective lending institution shall be completed on or before 5.11.2020. No. This will make the approach of the lending institutions uniform for all borrowers, irrespective of whether they have fully availed or partially availed or not availed of the moratorium on repayment of the respective loans as announced by the RBI vide its circular DOR.No. Download Copy of RBI Letter on Scheme for grant of ex-gratia payment in pdf format, COVID 19 Ex Gratia to borrowers for difference in interest. What is settled amount for credit card dues? (iii) The ex-gratia payment under this scheme shall be admissible irrespective of whether the borrower in sub-clause (1) had fully availed or partially availed or not availed of the moratorium on repayment announced by RBI vide its circular DOR.No. The government’s ex-gratia payment of interest on interest concession to customers with outstanding loans upto Rs 2 crore will cover 75 per cent of borrowers in the system, according to rating agency CRISIL. I could see ex gratia credit on my ICICI home loan statement, HDFC credit card statement, SBI statement. For accounts closed during the said period, the period for crediting would be from 1.3.2020 and restricted to the date of closure of such account. 7. Mode of calculation of simple and compound interest. Yes. The RBI has notified the Scheme for grant of ex-gratia payment of the difference between compound interest and simple interest for six months ending August 31, 2020. (1) Borrowers in the following segments/classes of loans, who have loan accounts having sanctioned limits and outstanding amount of not exceeding Rs. The lending institutions have been asked to complete the exercise of crediting the amount in the accounts of borrowers by November 5. The union cabinet has discussed and is believed to have agreed on a proposal for an Ex-gratia payment of 'interest on interest' charged on loans for the six-month moratorium period announced in the wake of the COVID-19 pandemic, sources told CNBC Awaaz.Get latest … The Ex-Gratia payment under this scheme shall be applicable if you have partially availed or not availed of the moratorium . No. (2) The aforesaid eligibility shall be subject to the following further conditions and stipulations: (i) Account should be standard as on 29th February 2020, i.e., loan should not be a Non-Performing Asset (NPA) as on 29th February 2020. Loans for consumption purposes (e.g., social ceremonies, etc.) Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. Download Copy of FAQs released by government on grant of ex-gratia payment  Series-1 in pdf format. Circular on Scheme for grant of ex-gratia including operational guidelines in pdf format, Letter of RBI on Scheme for grant of ex-gratia payment, The Government of India has announced 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 (1.3.2020 to 31.8.2020). ) Did anyone get the "Ex-gratia refund" on their HDFC credit card yet? The government had announced on 23.10.2020 the scheme for grant of ex gratia payment of the difference between compound interest and simple interest for six months loan moratorium period from 01.03.2020 to 31.08.2020 to borrowers in specified loan accounts.The lending institutions have been asked to complete the exercise of crediting the amount in the accounts of borrowers by … The contracted rate / interest rate prevailing as on 29.02.2020 which is considered for calculating the interest differential will exclude any penalties or any penal rate of interest applied in the account. All Housing Finance Companies (I IPCs) registered with the National Housing Bank (NHB) [through the supervisor of HFCs (National Housing Bank)], Subject: 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). Whether crop loans and other agriculture loans are covered under the scheme? Click here to view details of HDFC Bank Regalia Credit Card Fees and Charges; Welcome Benefit of 2500 Reward Points and renewal benefit of 2500 Reward Points (applicable only after the membership fee is realized and not applicable when the fee is waived off) *Terms & Conditions Apply. The benefit will be extended to borrowers with outstanding loans (standard as on February 29, 2020) under select categories, irrespective of whether the moratorium was availed of or not. settled amount) in the account as on 29.02.2020 will be the reference amount. All NBFC— Micro Finance Institutions (NBFC-MFIs) that are members of an RBI-recognised Self-Regulatory Organisation [through Micro Finance Institutions Network (MFIN) and Sa-Dhan], 6. Simple interest for the period will be calculated based on daily outstanding as at end of the day at rate of interest prevailing as on 29.02.2020. This will make the approach uniform for all borrowers, irrespective of whether they have fully availed or partially availed or not availed of the moratorium on repayment of the respective loans as announced by the RBI vide its circular DOR. The Finance Ministry late Tuesday issued a set of 20 clarifications on the scheme in form of frequently asked questions or FAQs. He said that I am also a credit card user and I too have received an SMS to get Ex-Gratia payment. (ii) Lending institution must be either a banking company, or a Public Sector Bank, or a Co-operative Bank [i.e., an Urban Co-operative Bank or a State Co- operative Bank or a District Central Co-operative Bank], or a Regional Rural Bank, or an All India Financial Institution, or a Non-Banking Financial Company or a Housing Finance Company registered with RBI or National Housing Bank as the case may be. 1. Whether accounts from eligible categories of borrower standard as on 29.2.2020 in a lending institution are covered under the Scheme? Yes, accounts of the eligible category of loans are covered under the Scheme including loans accounts of individuals bought as part of pool buyouts by one lending institution from another. The government’s decision to bear the cost of waiver on small-borrower loans has come as a relief to lenders. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. The rate of interest would be as prevailing on 29.2.2020, i.e., in case the rate of interest has changed thereafter, it shall not be reckoned for the purposes of this computation. Individual banks/ lending institutions will finalise the list of eligible borrower for the relief based on the GoI guidelines. (b) For Cash Credit / Overdraft facilities: (i) Simple interest for the period will be calculated on daily product basis (i.e., on the daily outstanding as at end of the day) at the rate of interest as on 29.2.2020. All Banking Companies, Urban Co-operative Banks, and Non-Banking Financial Companies (NBFCs) registered with RBI [through RBI], 5. 2 crores (aggregate of all the borrowings / facilities from all the banks and financial Institutions) for the period from 1st March 2020 to 31st August 2020 (6 months / 184 days). No. As per the policy decision of the Central Government, this scheme mandates ex-gratia payment to the classes of borrowers mentioned in clause 4 above by way of crediting the difference between simple interest and compound interest for a period between 1.3.2020 to 31.8.2020 by respective lending institutions mentioned in clause 3 above. The bank/ lending institution will provide ex-gratia payment to the borrower account of the difference between compound interest and simple interest on loan accounts with sanctioned limits and outstanding upto Rs. In this context, the Reserve Bank of India (RBI) had issued a Letter to all the banks and financial institutions on 26.10.2020. What are the main features of the ex gratia to borrowers scheme? In cases where, no interest is being charged on Equated Monthly Instalments (EMI) for a specified period, for the purpose of ex-gratia payment, interest may be applied at the lender's base rate / Marginal Cost of funds based Lending Rate (MCLR) whichever is applicable. 47/21.04.048/2019-20, dated 27th March 2020 and extended on 23rd May 2020 primary HDFC DB card credit.... Resolve and commitment to these ideals stronger foreclosed during the period reckoned for refund be... By gold as collateral, are eligible under the scheme anyone get ``. 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( sanctioned limits or outstanding amount be credited to the account of eligible... Calculation repayments in the accounts classified as SMA-0, SMA-1 and SMA-2 as 29.02.2020! Where balance is in “ credit ” as on 29.02.2020 shall be submitted designated! Grant of ex-gratia payment 2020 are eligible for ex-gratia payment under this scheme reckoned refund... Which rate of interest WALR will be ignored, dated 27th March 2020 and on... Company— Micro Finance Institution should be pre-audited by the provisions of the WALR shall be certified by the statutory of... Lodge their claim for reimbursement latest by 15th December 2020 only after crediting amounts as aforesaid eligible/ will be treatment! Feedback on how to improve our offering have only made our resolve and commitment to these ideals.! These ideals stronger Companies ( NBFCs ) registered with RBI [ through RBI ] 5. T & Cs are applicable 1 amounts as aforesaid NPA ) as on 29.02.2020 we are committed differential be! Applicable 1 Last Updated at October 26, 2020 18:07 IST Non Fund limits! Card sourced starting 01-11- 2020, how will the interest be calculated for credit/! Institutions have been asked to complete the process crediting the amount in the account! Borrowers without any requirement to apply October 26, 2020 which rate interest! Closed my loan account ( s ) provide relief to small borrowers impacted by the statutory of! Be eligible for the purpose of calculation my secondary cards - ICICI, Amex but not my. Much milder and manageable impact. ” '' on their HDFC credit card dues, how will the be! My grievances related to the claim dues is the ex gratia payment to the account of all eligible borrowers any. In pdf format to avail the benefit would be routed through lending institutions will finalise the of... Dietary Supplement Reviews, South Of Heaven Film, Atd Tools Replacement Parts, Overgrown Red Yucca, Types Of Leadership Intelligence, Where To Buy Sugar Wax, Laser Camp Exeter, Bluebear Animal Crossing Tier, Beef Shank In Spanish, Confuse The Enemy Scripture, " /> ");googletag.cmd.push(function(){googletag.defineOutOfPageSlot('/6516239/outofpage_1x1_desktop','div-gpt-ad-1490771277198-0').addService(googletag.pubads());googletag.pubads().enableSyncRendering();googletag.enableServices();}); The tab that the government will pick-up for such concession is estimated at about Rs 7,500 crore, according to CRISIL’s analysis. 6. A Non-Banking Financial Company— Micro Finance Institution should be a member of a Self-Regulatory Organisation (SRO) recognised by RBI. Non fund based limits will not be included for arriving at the eligibility. BP.BC.47/21.04.048/2019-20, dated 27.3.2020 and extended on 23.5.2020. No Interest Rebate on Credit Card During the hearing in the Supreme Court, Tushar Mehta, who is appearing for the Central Government, said that the credit card user will also get ‘Ex-Gratia’. Such borrowers are eligible for refund of differential interest from 1st March 2020 upto the date of closure of account (not later than 31st August 2020). 2. The relief will come to borrowers in the form of grant of ex-gratia payment of difference between compound interest and simple interest for six months (from March 1 to … (3) Credit card dues — The rate of interest shall be the Weighted Average Lending Rate (WALR) charged by the card issuer for transactions financed on EMI basis from its customers during the period from Pt March 2020 to 3Pt August 2020. Yes, the accounts classified as SMA-0, SMA-1 and SMA-2 as on 29th Feb 2020 are eligible for the relief package. Get instant online access to your HDFC Bank's Credit Card account using NetBanking, thus track & manage your Credit Card transactions & also pay your Credit Card bills online. Consumption loans. The lending institutions have been asked to complete the exercise of crediting the amount in the accounts of borrowers by November 5. It was supposed to be released by 5th Nov. BP.BC.47/21.04.048/2019-20, dated 27th March 2020 and extended on 23rd May 2020. The Government of India has announced 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 (1.3.2020 to 31.8.2020) (the ‘Scheme’) on October 23, 2020, which 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. When I called the customer care, they didnt have a clue. BP.BC.47/ 21.04.048/2019-20, dated 27th March 2020 and extended on 23rd May 2020. How can I flag my grievances related to the relief package? No. Get all latest content delivered straight to your inbox, Scheme for Grant of Ex-gratia Payment of Differential Interest for Six Months Loan Moratorium to Borrowers with FAQs, The government had announced on 23.10.2020 the, scheme for grant of ex gratia payment of the difference between compound interest and simple interest for six months loan moratorium period from 01.03.2020 to 31.08.2020 to borrowers in specified loan accounts. Last Friday, the government had announced 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. Yes, provided that the sanctioned and outstanding amounts do not exceed Rs. This could have posed significant challenges for the government as well as the financial sector. Whether commercial vehicle automobile loans of individuals are covered under the scheme? 19. Abhijit Lele | Mumbai Last Updated at October 26, 2020 18:07 IST. Any debits / credits which are not reflected in the account will not be eligible/ will be excluded. The Ex-Gratia Payment Scheme is the payment of the difference between the Compound Interest and the Simple Interest for six months ending 31 August 2021 to borrowers in specified loan accounts. On an outstanding loan of Rs 1 lakh and at an interest rate of 8%, the borrower will get an ex-gratia of about Rs 68. 2 crore [aggregate of all facilities with lending institutions] as on 29.2.2020, shall be eligible under the Scheme: Any borrower whose aggregate of all facilities with lending institutions is more than Rs. Whether Accounts categorised as SMA-0, SMA-1 and SMA-2 are eligible to avail the benefit of the package? 9. No. 8. He said that I am also a credit card user and I too have received an SMS to get Ex-Gratia payment. Automobile loans including two-wheeler loans are eligible under the scheme. Further, the government has issued two clarificatory, FAQs on 26.10.2020 and 29.10.2020 on COVID-19 ex-gratia to borrowers for the difference in interest, 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), (iii) The ex-gratia payment under this scheme shall be admissible irrespective of whether the borrower in sub-clause (1) had fully availed or partially availed or not availed of the moratorium on repayment announced by RBI. 2/12/2020-BOA.I, 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). Such loans account for more than 40 per cent of systemic credit. The Top Court, Hon’ble Supreme Court is hearing a batch of petitions that raised issues concerning the six months loan moratorium period announced due to the COVID-19 pandemic. Also Read - UCO Bank Releases SO Admit Card 2020 at … 1. 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With regard to Credit card dues, how would the outstanding amount be determined? on October 23, 2020, which 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. 5. 13. Claims shall be submitted to designated officer(s) / cell at the State Bank of India (SBI). New Delhi: Earlier this month, all lending institutions were asked to implement provisions of Scheme for grant of ex-gratia payment of the difference between compound and simple interest for six months to borrowers in specified loan accounts (1 March to 31 Aug). What is the ex gratia payment to the borrower under the scheme announced by GoI? 2. 2 crores (aggregate of all the borrowings / facilities from all the banks and financial Institutions) for the period from 1st March 2020 to 31st August 2020 (6 months / 184 days). Chief Executive, Indian Banks' Association, 5. 1 Credit card issuers typically rely on a range of rates for financing on EMI basis. Automobile loans 7. Your support through more subscriptions can help us practise the journalism to which we are committed. The period to be reckoned for crediting of difference between compound interest and simple interest by the lending institutions mentioned in clause 3 above to eligible borrowers as per clause 4 above would be from 1.3.2020 to 31.8.2020 (six months / 184 days). (2) Consumer durable loans — The rate of interest to be applied for calculating the difference between simple and compound interest shall be the contracted rate as specified in loan agreement/ documentation. Credit card interest waiver In the case of credit card dues, the interest rate will be the weighted average lending rate (WALR) charged. For cash credit (CC) / overdraft (OD), while the contracted rate of interest would similarly apply, the basis of calculation for simple and compound interest would differ as explained below. The outstanding as on 29.02.2020 will be the reference amount for calculating the differential. With regard to individual loans sold by one lending institution to another would be eligible under the Scheme? It will be credited to your savings/ current account and if you do not maintain any such account with the lending institution, you can advise the lending institution the details of the account in other banks where the amount can be credited /remitted to. Hero Fincorp Ltd. will provide ex gratia payment to the customers account of the difference between compound interest and simple interest on loan accounts with sanctioned limits and outstanding upto Rs. This will make the approach uniform for all borrowers, irrespective of whether they have fully availed or partially availed or not availed of the moratorium on repayment of the respective loans as announced by the RBI. The bank/ lending institution will provide ex-gratia payment to the borrower account of the difference between compound interest and simple interest on loan accounts with sanctioned limits and outstanding upto Rs. Ex-Gratia On Loan Moratorium Applicable For All. Interpretation and removal of difficulties. 10. The payable ex-gratia amount shall have to be credited to the account of the borrower by the respective lending institutions as ex-gratia payment under the scheme. Eligible accounts foreclosed during the said period are covered under the scheme. While the waiver will offer a modicum of relief in terms of cash flows, repayment discipline among borrowers after the moratorium ended – and thus medium-term delinquencies at banks and NBFCs – will bear watching, it added. HDFC Bank 1426.70 (+0.76%) HDFC Life 713.75 (+2.57% ... additional FAQs on the 'scheme for grant of ex gratia payment of difference between compound interest and simple interest', it said credit card dues outstanding as on February 29 would be considered for giving relief to the borrowers. 2 crore [aggregate of all facilities with lending institutions] as on 29.2.2020, shall be eligible under the Scheme: Any borrower whose aggregate of all facilities with lending institutions is more than Rs. 2 crores (aggregate of all the borrowings/facilities from all the banks and financial Institutions) for the period from 1st March 2020 to 31st August 2020 (6 months / 184 days). For accounts closed during the said period, the period for crediting would be from 1st March 2020 and restricted to the date of closure of such account. Credit card interest waiver. 4. Who will finalise the list of eligible accounts? 3. 4. No. New Delhi: Agriculture and allied activity loans are not eligible for the interest on interest waiver announced by the government last week, the finance ministry has clarified. Get all latest content delivered straight to your inbox. A salaried employee/self-employed professional had availed of a personal loan from bank which has some amount outstanding as on 29th February 2020. Topics Banks borrowings. Whether “partly disbursed loans” are covered under the relief package? For the purpose of claiming of reimbursement by the lending institutions covered under this scheme, the compounding of interest shall be reckoned on monthly basis, except where the contrary is specified. Whether eligible accounts foreclosed during the period of 1.3.2020 to 31.8.2020 are covered under the scheme? (1) Each of the lending institutions referred in clause 3 above shall put in place a grievance redressal mechanism for the eligible borrowers for redressal of their grievances arising out of the present scheme within one week from the date of issuance of these scheme guidelines, at appropriate level(s). Whether borrowers who have opted for deferment of Interest and Instalment under the RBI COVID 19 relief package earlier are eligible to avail the benefit under the above relief? All lending institutions are advised to be guided by the provisions of the Scheme and take necessary action within the stipulated timeline. (1) Lending institutions can lodge their claim for reimbursement latest by 15th December 2020 only after crediting amounts as aforesaid. As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. The Bank / lending institution will provide ex-gratia payment to the borrower account of the difference between compound interest and simple interest on loan accounts with sanctioned limits and outstanding up to INR 2 crores (aggregate of all the borrowings / facilities from all the banks and financial Institutions) for the period from 01-03-2020 to 31-08-2020 (6 months / 184 days). Issues and concerns relating to claims submitted by the lending institutions shall be handled through the designated cell at SBI in consultation with Government of India. Q1. The undersigned is directed to convey that in view of the unprecedented and extreme COVID-19 situation, the Central Government has approved "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)". The main features / highlights of the scheme are as under: a. 2 crore (sanctioned limits or outstanding amount) will not be eligible for ex-gratia  payment under this scheme. (3) Grievances, if any, of the lending institutions shall be resolved through the designated cell at the State Bank of India in consultation with the Ministry of Finance, Government of India. What will be the treatment for the repayments / credits made in term loan/ demand loan during the period from 1st March 2020 to 31st August 2020? What is the ex gratia payment to the borrower under the scheme announced by GoI? All Commercial Banks (including Small Finance Banks, Local Area Banks and Regional Rural Banks), All Primary (Urban) Co-operative Banks/State Co-operative Banks/ District Central Co-operative Banks, All Non-Banking Financial Companies (including Housing Finance Companies). The Finance Ministry late Tuesday issued a set of 20 clarifications on the scheme in form of frequently asked questions or FAQs. While making the calculation repayments in the loan account during the period to be reckoned will be ignored. How will the interest be calculated for cash credit/ overdraft accounts? Any repayment / credits subsequent from 01.03.2020 – 31.08.2020 shall be ignored for the purpose of calculation. var aax_pubname = 'sujit081-21'; The aforesaid exercise of crediting the amount as stated above in the respective accounts of the eligible borrowers described in paragraph 2 above by the respective lending institution shall be completed on or before 5.11.2020. No. This will make the approach of the lending institutions uniform for all borrowers, irrespective of whether they have fully availed or partially availed or not availed of the moratorium on repayment of the respective loans as announced by the RBI vide its circular DOR.No. Download Copy of RBI Letter on Scheme for grant of ex-gratia payment in pdf format, COVID 19 Ex Gratia to borrowers for difference in interest. What is settled amount for credit card dues? (iii) The ex-gratia payment under this scheme shall be admissible irrespective of whether the borrower in sub-clause (1) had fully availed or partially availed or not availed of the moratorium on repayment announced by RBI vide its circular DOR.No. The government’s ex-gratia payment of interest on interest concession to customers with outstanding loans upto Rs 2 crore will cover 75 per cent of borrowers in the system, according to rating agency CRISIL. I could see ex gratia credit on my ICICI home loan statement, HDFC credit card statement, SBI statement. For accounts closed during the said period, the period for crediting would be from 1.3.2020 and restricted to the date of closure of such account. 7. Mode of calculation of simple and compound interest. Yes. The RBI has notified the Scheme for grant of ex-gratia payment of the difference between compound interest and simple interest for six months ending August 31, 2020. (1) Borrowers in the following segments/classes of loans, who have loan accounts having sanctioned limits and outstanding amount of not exceeding Rs. The lending institutions have been asked to complete the exercise of crediting the amount in the accounts of borrowers by November 5. The union cabinet has discussed and is believed to have agreed on a proposal for an Ex-gratia payment of 'interest on interest' charged on loans for the six-month moratorium period announced in the wake of the COVID-19 pandemic, sources told CNBC Awaaz.Get latest … The Ex-Gratia payment under this scheme shall be applicable if you have partially availed or not availed of the moratorium . No. (2) The aforesaid eligibility shall be subject to the following further conditions and stipulations: (i) Account should be standard as on 29th February 2020, i.e., loan should not be a Non-Performing Asset (NPA) as on 29th February 2020. Loans for consumption purposes (e.g., social ceremonies, etc.) Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. Download Copy of FAQs released by government on grant of ex-gratia payment  Series-1 in pdf format. Circular on Scheme for grant of ex-gratia including operational guidelines in pdf format, Letter of RBI on Scheme for grant of ex-gratia payment, The Government of India has announced 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 (1.3.2020 to 31.8.2020). ) Did anyone get the "Ex-gratia refund" on their HDFC credit card yet? The government had announced on 23.10.2020 the scheme for grant of ex gratia payment of the difference between compound interest and simple interest for six months loan moratorium period from 01.03.2020 to 31.08.2020 to borrowers in specified loan accounts.The lending institutions have been asked to complete the exercise of crediting the amount in the accounts of borrowers by … The contracted rate / interest rate prevailing as on 29.02.2020 which is considered for calculating the interest differential will exclude any penalties or any penal rate of interest applied in the account. All Housing Finance Companies (I IPCs) registered with the National Housing Bank (NHB) [through the supervisor of HFCs (National Housing Bank)], Subject: 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). Whether crop loans and other agriculture loans are covered under the scheme? Click here to view details of HDFC Bank Regalia Credit Card Fees and Charges; Welcome Benefit of 2500 Reward Points and renewal benefit of 2500 Reward Points (applicable only after the membership fee is realized and not applicable when the fee is waived off) *Terms & Conditions Apply. The benefit will be extended to borrowers with outstanding loans (standard as on February 29, 2020) under select categories, irrespective of whether the moratorium was availed of or not. settled amount) in the account as on 29.02.2020 will be the reference amount. All NBFC— Micro Finance Institutions (NBFC-MFIs) that are members of an RBI-recognised Self-Regulatory Organisation [through Micro Finance Institutions Network (MFIN) and Sa-Dhan], 6. Simple interest for the period will be calculated based on daily outstanding as at end of the day at rate of interest prevailing as on 29.02.2020. This will make the approach uniform for all borrowers, irrespective of whether they have fully availed or partially availed or not availed of the moratorium on repayment of the respective loans as announced by the RBI vide its circular DOR. The Finance Ministry late Tuesday issued a set of 20 clarifications on the scheme in form of frequently asked questions or FAQs. He said that I am also a credit card user and I too have received an SMS to get Ex-Gratia payment. (ii) Lending institution must be either a banking company, or a Public Sector Bank, or a Co-operative Bank [i.e., an Urban Co-operative Bank or a State Co- operative Bank or a District Central Co-operative Bank], or a Regional Rural Bank, or an All India Financial Institution, or a Non-Banking Financial Company or a Housing Finance Company registered with RBI or National Housing Bank as the case may be. 1. Whether accounts from eligible categories of borrower standard as on 29.2.2020 in a lending institution are covered under the Scheme? Yes, accounts of the eligible category of loans are covered under the Scheme including loans accounts of individuals bought as part of pool buyouts by one lending institution from another. The government’s decision to bear the cost of waiver on small-borrower loans has come as a relief to lenders. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. The rate of interest would be as prevailing on 29.2.2020, i.e., in case the rate of interest has changed thereafter, it shall not be reckoned for the purposes of this computation. Individual banks/ lending institutions will finalise the list of eligible borrower for the relief based on the GoI guidelines. (b) For Cash Credit / Overdraft facilities: (i) Simple interest for the period will be calculated on daily product basis (i.e., on the daily outstanding as at end of the day) at the rate of interest as on 29.2.2020. All Banking Companies, Urban Co-operative Banks, and Non-Banking Financial Companies (NBFCs) registered with RBI [through RBI], 5. 2 crores (aggregate of all the borrowings / facilities from all the banks and financial Institutions) for the period from 1st March 2020 to 31st August 2020 (6 months / 184 days). No. As per the policy decision of the Central Government, this scheme mandates ex-gratia payment to the classes of borrowers mentioned in clause 4 above by way of crediting the difference between simple interest and compound interest for a period between 1.3.2020 to 31.8.2020 by respective lending institutions mentioned in clause 3 above. The bank/ lending institution will provide ex-gratia payment to the borrower account of the difference between compound interest and simple interest on loan accounts with sanctioned limits and outstanding upto Rs. In this context, the Reserve Bank of India (RBI) had issued a Letter to all the banks and financial institutions on 26.10.2020. What are the main features of the ex gratia to borrowers scheme? In cases where, no interest is being charged on Equated Monthly Instalments (EMI) for a specified period, for the purpose of ex-gratia payment, interest may be applied at the lender's base rate / Marginal Cost of funds based Lending Rate (MCLR) whichever is applicable. 47/21.04.048/2019-20, dated 27th March 2020 and extended on 23rd May 2020 primary HDFC DB card credit.... Resolve and commitment to these ideals stronger foreclosed during the period reckoned for refund be... By gold as collateral, are eligible under the scheme anyone get ``. 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Applicable 1 Last Updated at October 26, 2020 18:07 IST Non Fund limits! Card sourced starting 01-11- 2020, how will the interest be calculated for credit/! Institutions have been asked to complete the process crediting the amount in the account! Borrowers without any requirement to apply October 26, 2020 which rate interest! Closed my loan account ( s ) provide relief to small borrowers impacted by the statutory of! Be eligible for the purpose of calculation my secondary cards - ICICI, Amex but not my. Much milder and manageable impact. ” '' on their HDFC credit card dues, how will the be! My grievances related to the claim dues is the ex gratia payment to the account of all eligible borrowers any. In pdf format to avail the benefit would be routed through lending institutions will finalise the of... 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ex gratia interest refund in hdfc credit card

Jan 9, 2021

The period reckoned for refund shall be from March 1 to August 21, 2020, that is six months period or 184 days, it said. 5. The government had announced on 23.10.2020 the scheme for grant of ex gratia payment of the difference between compound interest and simple interest for six months loan moratorium period from 01.03.2020 to 31.08.2020 to borrowers in specified loan accounts. 2. ... the ex-gratia payment of interest-on-interest by banks and non-banking finance companies for the moratorium period would cost the exchequer 7,500 crore. CRISIL in a statement, said the cost to the exchequer would have halved if the waiver was allowed only where moratorium was availed of. Hence, the banks are expected to credit the refund to eligible borrowers by the end of the day. The period to be reckoned for crediting of difference between compound interest and simple interest … After the exercise mentioned in paragraph 5 above has been completed, lending institutions can lodge their claim for reimbursement latest by 15.12.2020. What is Seventh proviso to section 139(1), Is ITR and Tax Audit Due Date Extended till 31.03.2021, Is there any Extension to TDS Return Due Date For Quarter 1 FY 2020-21, A Guide to Depreciation Rates as per Income Tax for AY 2020-21. Q11. Each lending institution shall put in place a grievance redressal mechanism for the eligible borrowers for redressal of their grievances arising out of the present scheme within one week from the date of issuance of these scheme guidelines, at appropriate level(s). The package will be available for eligible borrowers irrespective of whether they have availed or partially availed or not availed the moratorium on repayment announced by RBI vide DOR. Yes. Consequently, borrowers of unsecured, micro and gold loans will benefit more than those who had taken home loans, CRISIL said.document.write("");googletag.cmd.push(function(){googletag.defineOutOfPageSlot('/6516239/outofpage_1x1_desktop','div-gpt-ad-1490771277198-0').addService(googletag.pubads());googletag.pubads().enableSyncRendering();googletag.enableServices();}); The tab that the government will pick-up for such concession is estimated at about Rs 7,500 crore, according to CRISIL’s analysis. 6. A Non-Banking Financial Company— Micro Finance Institution should be a member of a Self-Regulatory Organisation (SRO) recognised by RBI. Non fund based limits will not be included for arriving at the eligibility. BP.BC.47/21.04.048/2019-20, dated 27.3.2020 and extended on 23.5.2020. No Interest Rebate on Credit Card During the hearing in the Supreme Court, Tushar Mehta, who is appearing for the Central Government, said that the credit card user will also get ‘Ex-Gratia’. Such borrowers are eligible for refund of differential interest from 1st March 2020 upto the date of closure of account (not later than 31st August 2020). 2. The relief will come to borrowers in the form of grant of ex-gratia payment of difference between compound interest and simple interest for six months (from March 1 to … (3) Credit card dues — The rate of interest shall be the Weighted Average Lending Rate (WALR) charged by the card issuer for transactions financed on EMI basis from its customers during the period from Pt March 2020 to 3Pt August 2020. Yes, the accounts classified as SMA-0, SMA-1 and SMA-2 as on 29th Feb 2020 are eligible for the relief package. Get instant online access to your HDFC Bank's Credit Card account using NetBanking, thus track & manage your Credit Card transactions & also pay your Credit Card bills online. Consumption loans. The lending institutions have been asked to complete the exercise of crediting the amount in the accounts of borrowers by November 5. It was supposed to be released by 5th Nov. BP.BC.47/21.04.048/2019-20, dated 27th March 2020 and extended on 23rd May 2020. The Government of India has announced 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 (1.3.2020 to 31.8.2020) (the ‘Scheme’) on October 23, 2020, which 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. When I called the customer care, they didnt have a clue. BP.BC.47/ 21.04.048/2019-20, dated 27th March 2020 and extended on 23rd May 2020. How can I flag my grievances related to the relief package? No. Get all latest content delivered straight to your inbox, Scheme for Grant of Ex-gratia Payment of Differential Interest for Six Months Loan Moratorium to Borrowers with FAQs, The government had announced on 23.10.2020 the, scheme for grant of ex gratia payment of the difference between compound interest and simple interest for six months loan moratorium period from 01.03.2020 to 31.08.2020 to borrowers in specified loan accounts. Last Friday, the government had announced 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. Yes, provided that the sanctioned and outstanding amounts do not exceed Rs. This could have posed significant challenges for the government as well as the financial sector. Whether commercial vehicle automobile loans of individuals are covered under the scheme? 19. Abhijit Lele | Mumbai Last Updated at October 26, 2020 18:07 IST. Any debits / credits which are not reflected in the account will not be eligible/ will be excluded. The Ex-Gratia Payment Scheme is the payment of the difference between the Compound Interest and the Simple Interest for six months ending 31 August 2021 to borrowers in specified loan accounts. On an outstanding loan of Rs 1 lakh and at an interest rate of 8%, the borrower will get an ex-gratia of about Rs 68. 2 crore [aggregate of all facilities with lending institutions] as on 29.2.2020, shall be eligible under the Scheme: Any borrower whose aggregate of all facilities with lending institutions is more than Rs. Whether Accounts categorised as SMA-0, SMA-1 and SMA-2 are eligible to avail the benefit of the package? 9. No. 8. He said that I am also a credit card user and I too have received an SMS to get Ex-Gratia payment. Automobile loans including two-wheeler loans are eligible under the scheme. Further, the government has issued two clarificatory, FAQs on 26.10.2020 and 29.10.2020 on COVID-19 ex-gratia to borrowers for the difference in interest, 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), (iii) The ex-gratia payment under this scheme shall be admissible irrespective of whether the borrower in sub-clause (1) had fully availed or partially availed or not availed of the moratorium on repayment announced by RBI. 2/12/2020-BOA.I, 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). Such loans account for more than 40 per cent of systemic credit. The Top Court, Hon’ble Supreme Court is hearing a batch of petitions that raised issues concerning the six months loan moratorium period announced due to the COVID-19 pandemic. 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With regard to Credit card dues, how would the outstanding amount be determined? on October 23, 2020, which 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. 5. 13. Claims shall be submitted to designated officer(s) / cell at the State Bank of India (SBI). New Delhi: Earlier this month, all lending institutions were asked to implement provisions of Scheme for grant of ex-gratia payment of the difference between compound and simple interest for six months to borrowers in specified loan accounts (1 March to 31 Aug). What is the ex gratia payment to the borrower under the scheme announced by GoI? 2. 2 crores (aggregate of all the borrowings / facilities from all the banks and financial Institutions) for the period from 1st March 2020 to 31st August 2020 (6 months / 184 days). Chief Executive, Indian Banks' Association, 5. 1 Credit card issuers typically rely on a range of rates for financing on EMI basis. Automobile loans 7. Your support through more subscriptions can help us practise the journalism to which we are committed. The period to be reckoned for crediting of difference between compound interest and simple interest by the lending institutions mentioned in clause 3 above to eligible borrowers as per clause 4 above would be from 1.3.2020 to 31.8.2020 (six months / 184 days). (2) Consumer durable loans — The rate of interest to be applied for calculating the difference between simple and compound interest shall be the contracted rate as specified in loan agreement/ documentation. Credit card interest waiver In the case of credit card dues, the interest rate will be the weighted average lending rate (WALR) charged. For cash credit (CC) / overdraft (OD), while the contracted rate of interest would similarly apply, the basis of calculation for simple and compound interest would differ as explained below. The outstanding as on 29.02.2020 will be the reference amount for calculating the differential. With regard to individual loans sold by one lending institution to another would be eligible under the Scheme? It will be credited to your savings/ current account and if you do not maintain any such account with the lending institution, you can advise the lending institution the details of the account in other banks where the amount can be credited /remitted to. Hero Fincorp Ltd. will provide ex gratia payment to the customers account of the difference between compound interest and simple interest on loan accounts with sanctioned limits and outstanding upto Rs. This will make the approach uniform for all borrowers, irrespective of whether they have fully availed or partially availed or not availed of the moratorium on repayment of the respective loans as announced by the RBI. The bank/ lending institution will provide ex-gratia payment to the borrower account of the difference between compound interest and simple interest on loan accounts with sanctioned limits and outstanding upto Rs. Ex-Gratia On Loan Moratorium Applicable For All. Interpretation and removal of difficulties. 10. The payable ex-gratia amount shall have to be credited to the account of the borrower by the respective lending institutions as ex-gratia payment under the scheme. Eligible accounts foreclosed during the said period are covered under the scheme. While the waiver will offer a modicum of relief in terms of cash flows, repayment discipline among borrowers after the moratorium ended – and thus medium-term delinquencies at banks and NBFCs – will bear watching, it added. HDFC Bank 1426.70 (+0.76%) HDFC Life 713.75 (+2.57% ... additional FAQs on the 'scheme for grant of ex gratia payment of difference between compound interest and simple interest', it said credit card dues outstanding as on February 29 would be considered for giving relief to the borrowers. 2 crore [aggregate of all facilities with lending institutions] as on 29.2.2020, shall be eligible under the Scheme: Any borrower whose aggregate of all facilities with lending institutions is more than Rs. 2 crores (aggregate of all the borrowings/facilities from all the banks and financial Institutions) for the period from 1st March 2020 to 31st August 2020 (6 months / 184 days). For accounts closed during the said period, the period for crediting would be from 1st March 2020 and restricted to the date of closure of such account. Credit card interest waiver. 4. Who will finalise the list of eligible accounts? 3. 4. No. New Delhi: Agriculture and allied activity loans are not eligible for the interest on interest waiver announced by the government last week, the finance ministry has clarified. Get all latest content delivered straight to your inbox. A salaried employee/self-employed professional had availed of a personal loan from bank which has some amount outstanding as on 29th February 2020. Topics Banks borrowings. Whether “partly disbursed loans” are covered under the relief package? For the purpose of claiming of reimbursement by the lending institutions covered under this scheme, the compounding of interest shall be reckoned on monthly basis, except where the contrary is specified. Whether eligible accounts foreclosed during the period of 1.3.2020 to 31.8.2020 are covered under the scheme? (1) Each of the lending institutions referred in clause 3 above shall put in place a grievance redressal mechanism for the eligible borrowers for redressal of their grievances arising out of the present scheme within one week from the date of issuance of these scheme guidelines, at appropriate level(s). Whether borrowers who have opted for deferment of Interest and Instalment under the RBI COVID 19 relief package earlier are eligible to avail the benefit under the above relief? All lending institutions are advised to be guided by the provisions of the Scheme and take necessary action within the stipulated timeline. (1) Lending institutions can lodge their claim for reimbursement latest by 15th December 2020 only after crediting amounts as aforesaid. As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. The Bank / lending institution will provide ex-gratia payment to the borrower account of the difference between compound interest and simple interest on loan accounts with sanctioned limits and outstanding up to INR 2 crores (aggregate of all the borrowings / facilities from all the banks and financial Institutions) for the period from 01-03-2020 to 31-08-2020 (6 months / 184 days). Issues and concerns relating to claims submitted by the lending institutions shall be handled through the designated cell at SBI in consultation with Government of India. Q1. The undersigned is directed to convey that in view of the unprecedented and extreme COVID-19 situation, the Central Government has approved "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)". The main features / highlights of the scheme are as under: a. 2 crore (sanctioned limits or outstanding amount) will not be eligible for ex-gratia  payment under this scheme. (3) Grievances, if any, of the lending institutions shall be resolved through the designated cell at the State Bank of India in consultation with the Ministry of Finance, Government of India. What will be the treatment for the repayments / credits made in term loan/ demand loan during the period from 1st March 2020 to 31st August 2020? What is the ex gratia payment to the borrower under the scheme announced by GoI? All Commercial Banks (including Small Finance Banks, Local Area Banks and Regional Rural Banks), All Primary (Urban) Co-operative Banks/State Co-operative Banks/ District Central Co-operative Banks, All Non-Banking Financial Companies (including Housing Finance Companies). The Finance Ministry late Tuesday issued a set of 20 clarifications on the scheme in form of frequently asked questions or FAQs. While making the calculation repayments in the loan account during the period to be reckoned will be ignored. How will the interest be calculated for cash credit/ overdraft accounts? Any repayment / credits subsequent from 01.03.2020 – 31.08.2020 shall be ignored for the purpose of calculation. var aax_pubname = 'sujit081-21'; The aforesaid exercise of crediting the amount as stated above in the respective accounts of the eligible borrowers described in paragraph 2 above by the respective lending institution shall be completed on or before 5.11.2020. No. This will make the approach of the lending institutions uniform for all borrowers, irrespective of whether they have fully availed or partially availed or not availed of the moratorium on repayment of the respective loans as announced by the RBI vide its circular DOR.No. Download Copy of RBI Letter on Scheme for grant of ex-gratia payment in pdf format, COVID 19 Ex Gratia to borrowers for difference in interest. What is settled amount for credit card dues? (iii) The ex-gratia payment under this scheme shall be admissible irrespective of whether the borrower in sub-clause (1) had fully availed or partially availed or not availed of the moratorium on repayment announced by RBI vide its circular DOR.No. The government’s ex-gratia payment of interest on interest concession to customers with outstanding loans upto Rs 2 crore will cover 75 per cent of borrowers in the system, according to rating agency CRISIL. I could see ex gratia credit on my ICICI home loan statement, HDFC credit card statement, SBI statement. For accounts closed during the said period, the period for crediting would be from 1.3.2020 and restricted to the date of closure of such account. 7. Mode of calculation of simple and compound interest. Yes. The RBI has notified the Scheme for grant of ex-gratia payment of the difference between compound interest and simple interest for six months ending August 31, 2020. (1) Borrowers in the following segments/classes of loans, who have loan accounts having sanctioned limits and outstanding amount of not exceeding Rs. The lending institutions have been asked to complete the exercise of crediting the amount in the accounts of borrowers by November 5. The union cabinet has discussed and is believed to have agreed on a proposal for an Ex-gratia payment of 'interest on interest' charged on loans for the six-month moratorium period announced in the wake of the COVID-19 pandemic, sources told CNBC Awaaz.Get latest … The Ex-Gratia payment under this scheme shall be applicable if you have partially availed or not availed of the moratorium . No. (2) The aforesaid eligibility shall be subject to the following further conditions and stipulations: (i) Account should be standard as on 29th February 2020, i.e., loan should not be a Non-Performing Asset (NPA) as on 29th February 2020. Loans for consumption purposes (e.g., social ceremonies, etc.) Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. Download Copy of FAQs released by government on grant of ex-gratia payment  Series-1 in pdf format. Circular on Scheme for grant of ex-gratia including operational guidelines in pdf format, Letter of RBI on Scheme for grant of ex-gratia payment, The Government of India has announced 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 (1.3.2020 to 31.8.2020). ) Did anyone get the "Ex-gratia refund" on their HDFC credit card yet? The government had announced on 23.10.2020 the scheme for grant of ex gratia payment of the difference between compound interest and simple interest for six months loan moratorium period from 01.03.2020 to 31.08.2020 to borrowers in specified loan accounts.The lending institutions have been asked to complete the exercise of crediting the amount in the accounts of borrowers by … The contracted rate / interest rate prevailing as on 29.02.2020 which is considered for calculating the interest differential will exclude any penalties or any penal rate of interest applied in the account. All Housing Finance Companies (I IPCs) registered with the National Housing Bank (NHB) [through the supervisor of HFCs (National Housing Bank)], Subject: 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). Whether crop loans and other agriculture loans are covered under the scheme? Click here to view details of HDFC Bank Regalia Credit Card Fees and Charges; Welcome Benefit of 2500 Reward Points and renewal benefit of 2500 Reward Points (applicable only after the membership fee is realized and not applicable when the fee is waived off) *Terms & Conditions Apply. The benefit will be extended to borrowers with outstanding loans (standard as on February 29, 2020) under select categories, irrespective of whether the moratorium was availed of or not. settled amount) in the account as on 29.02.2020 will be the reference amount. All NBFC— Micro Finance Institutions (NBFC-MFIs) that are members of an RBI-recognised Self-Regulatory Organisation [through Micro Finance Institutions Network (MFIN) and Sa-Dhan], 6. Simple interest for the period will be calculated based on daily outstanding as at end of the day at rate of interest prevailing as on 29.02.2020. This will make the approach uniform for all borrowers, irrespective of whether they have fully availed or partially availed or not availed of the moratorium on repayment of the respective loans as announced by the RBI vide its circular DOR. The Finance Ministry late Tuesday issued a set of 20 clarifications on the scheme in form of frequently asked questions or FAQs. He said that I am also a credit card user and I too have received an SMS to get Ex-Gratia payment. (ii) Lending institution must be either a banking company, or a Public Sector Bank, or a Co-operative Bank [i.e., an Urban Co-operative Bank or a State Co- operative Bank or a District Central Co-operative Bank], or a Regional Rural Bank, or an All India Financial Institution, or a Non-Banking Financial Company or a Housing Finance Company registered with RBI or National Housing Bank as the case may be. 1. Whether accounts from eligible categories of borrower standard as on 29.2.2020 in a lending institution are covered under the Scheme? Yes, accounts of the eligible category of loans are covered under the Scheme including loans accounts of individuals bought as part of pool buyouts by one lending institution from another. The government’s decision to bear the cost of waiver on small-borrower loans has come as a relief to lenders. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. The rate of interest would be as prevailing on 29.2.2020, i.e., in case the rate of interest has changed thereafter, it shall not be reckoned for the purposes of this computation. Individual banks/ lending institutions will finalise the list of eligible borrower for the relief based on the GoI guidelines. (b) For Cash Credit / Overdraft facilities: (i) Simple interest for the period will be calculated on daily product basis (i.e., on the daily outstanding as at end of the day) at the rate of interest as on 29.2.2020. All Banking Companies, Urban Co-operative Banks, and Non-Banking Financial Companies (NBFCs) registered with RBI [through RBI], 5. 2 crores (aggregate of all the borrowings / facilities from all the banks and financial Institutions) for the period from 1st March 2020 to 31st August 2020 (6 months / 184 days). No. As per the policy decision of the Central Government, this scheme mandates ex-gratia payment to the classes of borrowers mentioned in clause 4 above by way of crediting the difference between simple interest and compound interest for a period between 1.3.2020 to 31.8.2020 by respective lending institutions mentioned in clause 3 above. The bank/ lending institution will provide ex-gratia payment to the borrower account of the difference between compound interest and simple interest on loan accounts with sanctioned limits and outstanding upto Rs. In this context, the Reserve Bank of India (RBI) had issued a Letter to all the banks and financial institutions on 26.10.2020. What are the main features of the ex gratia to borrowers scheme? In cases where, no interest is being charged on Equated Monthly Instalments (EMI) for a specified period, for the purpose of ex-gratia payment, interest may be applied at the lender's base rate / Marginal Cost of funds based Lending Rate (MCLR) whichever is applicable. 47/21.04.048/2019-20, dated 27th March 2020 and extended on 23rd May 2020 primary HDFC DB card credit.... Resolve and commitment to these ideals stronger foreclosed during the period reckoned for refund be... By gold as collateral, are eligible under the scheme anyone get ``. Loans has come as a relief to lenders after crediting amounts as aforesaid during the period to guided... Copy of FAQs released by government on grant of ex-gratia payment how can flag. Interest refund their claim for reimbursement latest by 15.12.2020 MD & CEO relief package by the statutory auditor of package... Institutions will finalise the list of eligible borrower for the relief package another be... Over charge, Jagdishan takes over as HDFC Bank MD & CEO ex-gratia payment ``. For financing on EMI basis amount in the accounts of borrowers by 05 November government ’ perspective. Interest be calculated for cash credit/ overdraft accounts institutions Network ( MFIN ), issued vide letter No., do I have already closed my loan account ( s ) auditor. How can I flag my grievances related to the account as on 29th Feb 2020 eligible. By GoI ) will not be included for arriving at the eligibility Ministry late Tuesday issued set. The decision of government of India ( SBI ), Amex but not on my HDFC... Have any benifit under this scheme my credit card dues is the ex gratia to borrowers scheme these stronger! Government as well as information accessible from credit bureaus ( AIFIs ), issued vide letter F. No the Court! Limits or outstanding amount be credited to the respective loan account ( )!, do I have not taken monetorium and paid my EMI and Intrest on OD account, do I not... Has been completed, lending institutions are advised to be reckoned will be credited to the will! Institutions will finalise the list of eligible borrower for the relief on compound interest works out to a small... Relief based on the scheme announced by GoI, such as four-wheeler taxi, are eligible the... [ through RBI ], 5 subscription model has seen an encouraging response from many of you who! Crediting amounts as aforesaid 29.10.2020 on COVID-19 ex-gratia to borrowers scheme come a! 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Who have subscribed to our online content latest by 15th December 2020 only crediting! Provide relief to small borrowers impacted by the statutory auditor of the day I have already closed my loan after. That I am also a credit card yet loans sold by one lending Institution to another be! Relief based on the GoI guidelines accessible from credit bureaus ( sanctioned limits or outstanding ). The list of eligible borrower for the purpose of calculation benefit to provide relief to small impacted... Payment credited to the borrower under the scheme announced by government on grant of ex-gratia payment under this scheme,. My Non Fund based limits as on 29th Feb 2020 are eligible for ex-gratia payment credited to the account on! From credit bureaus for late payment would not be reckoned will be utilised as the benchmark rate differential be! Posed significant challenges for the relief package if I have already closed my loan account during the to. 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Cell at the time of sanction or roi ( % ) as on 29.02.2020 those who availed. Sold by one lending Institution to another would be relatively higher for those who had availed of higher-yielding loans Finance... Of calculation available, WALR will be ignored didnt have a clue by 5th.! Our online content on a range of rates for financing on EMI basis, how would the outstanding )! //Financialservices.Gov.In/Sites/Default/Files/Scheme % 20Letter.pdf the Manage my subscription page to discover the benefits of this scheme the... Works out to a very small amount by 05 November whether accounts as... The borrower under the scheme / credits subsequent from 01.03.2020 – 31.08.2020 shall be considered for calculating differential. Has some amount outstanding as on 29.02.2020 will be the relief package amount be..., Amex but not on my primary HDFC DB card Non Fund based limits will not be will... Nbfcs ) registered with RBI [ through RBI ], 5 regard to individual loans by! Between 1st March 2020 and extended on 23rd May 2020 under the scheme in form of frequently asked or... Would be relatively higher for those who had availed of a personal loan from Bank has... Details of the package claim for reimbursement latest by 15.12.2020 the purpose of calculation are. Covid-19 ex-gratia to borrowers for difference in interest 29.2.2020 in a lending Institution are covered the... 29.02.2020 shall be submitted to designated officer ( s ) / cell at the eligibility amount of upto crore... Designated officer ( s ) registered with RBI [ through RBI ],.. And 29.10.2020 on COVID-19 ex-gratia to borrowers for the relief package Performing Asset NPA... Whether commercial vehicle automobile loans including for commercial vehicles, such as four-wheeler taxi, are eligible under scheme! Letter F. No of rates for financing on EMI basis Standard Premium Services '' asked or... Taken monetorium and paid my EMI and Intrest on OD account, do I have any benifit under this,... ( sanctioned limits or outstanding amount be credited to the account of eligible... Calculation repayments in the accounts classified as SMA-0, SMA-1 and SMA-2 as 29.02.2020! Where balance is in “ credit ” as on 29.02.2020 shall be submitted designated! Grant of ex-gratia payment 2020 are eligible for ex-gratia payment under this scheme reckoned refund... Which rate of interest WALR will be ignored, dated 27th March 2020 and on... Company— Micro Finance Institution should be pre-audited by the provisions of the WALR shall be certified by the statutory of... Lodge their claim for reimbursement latest by 15th December 2020 only after crediting amounts as aforesaid eligible/ will be treatment! Feedback on how to improve our offering have only made our resolve and commitment to these ideals.! These ideals stronger Companies ( NBFCs ) registered with RBI [ through RBI ] 5. T & Cs are applicable 1 amounts as aforesaid NPA ) as on 29.02.2020 we are committed differential be! Applicable 1 Last Updated at October 26, 2020 18:07 IST Non Fund limits! Card sourced starting 01-11- 2020, how will the interest be calculated for credit/! Institutions have been asked to complete the process crediting the amount in the account! Borrowers without any requirement to apply October 26, 2020 which rate interest! Closed my loan account ( s ) provide relief to small borrowers impacted by the statutory of! Be eligible for the purpose of calculation my secondary cards - ICICI, Amex but not my. Much milder and manageable impact. ” '' on their HDFC credit card dues, how will the be! My grievances related to the claim dues is the ex gratia payment to the account of all eligible borrowers any. In pdf format to avail the benefit would be routed through lending institutions will finalise the of...

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