Some diligent credit card customers were surprised at the start of this month when they received a message from their issuers informing them that the government’s ex-gratia money has been credited to their accounts. The lending institution will calculate and credit the due benefit to the loan account. Loans for consumption purposes (e.g., social ceremonies, etc.) In other words, if you spent through your card before 29 February, you would be eligible for the ex-gratia money even if you cleared your bill within the due date but after 29 February. Ex Gratia Payment is a scheme announced by Government of India for the payment of the difference between compound interest and simple interest for six months to the borrowers on loan accounts with sanctioned limits and outstanding upto Rs. Scheme of ex gratia payment of difference between compound interest and simple interest ..” Scheme for grant of ex gratia payment of difference between compound interest and simple interest for six months to borrowers in specific loan accounts . We have credited an amount of Rs. You are now subscribed to our newsletters. New Delhi: The Reserve Bank of India (RBI) issued direction on Tuesday to all lending institutions to implement provisions of Scheme for grant of ex-gratia payment of difference between compound and simple interest for six months to borrowers in specified loan accounts (1 March to 31 Aug) and take necessary action within the stipulated time. Take the example of a borrower who had a car loan EMI of ₹10,000 and an outstanding of ₹4 lakh. BP.BC.47/21.04.048/ 2019-20, dated 27.3.2020 and extended on 23.5.2020. Take an example of someone who had an outstanding credit card amount of ₹1 lakh as on 29 February and the bank charged him an interest of 3% each month or 18% for six months. Scheme for grant of Ex-gratia payment of difference between compound interest and simple interest for six months to borrower in specified loan accounts (01.03.2020 to 31.08.2020) (2.85 MB) FAQ on COVID-19 Ex-gratia to borrowers for difference in interest dated 26.10.2020. The notification said, "The Government of India … 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 (01-03-2020 to 31-08-2020) (the ‘Scheme’) on 23-10-2020, which mandates ex-gratia payment to certain categories of borrowers by way of crediting the difference between simple interest and compound interest for the … Be careful if a payment to a director of a small company is described as ex-gratia. 2 crore (sanctioned limits or outstanding amount) will not be eligible for ex-gratia payment under this scheme But if the interest is compounded, it would come to ₹19,405. Copyright © HT Digital Streams Limited All rights reserved. The central government has approved the ‘interest on interest’ scheme which grants ex-gratia payment of the difference between compound and simple interest to borrowers. An EMI comprises of principal and interest portions. ➢ Credit Card Dues: Weighted Average Lending rate (“WALR”) charged by Card issuer for transactions Meanwhile, loans taken for agriculture and related sectors will not get the ex-gratia. No. MUMBAI: Loans against fixed deposits, bonds and shares will not be eligible for relief under the government scheme for an ‘ex gratia’ payment to borrowers of up to Rs 2 crore. The Reserve Bank of India had announced a moratorium for 6 months from March 1 to August 31 following the outbreak of COVID-19. Will I be eligible for relief if my credit card balance is in “Credit” as on 29.02.2020? COVID-19 EX GRATIA SCHEME. 4502.00 to your Card Account XXXX2570 on 05-Nov-20 in accordance with Govt. Loans for consumption purposes (e.g., social ceremonies, etc.) The central government will incur an additional liability of Rs 6,500 crore for the implementation of the scheme. 13. Loans for consumption purposes (e.g., social ceremonies, etc.) In case you can’t find any email from our side, please check the spam folder. The same is true for those who surrendered their cards or repaid loans after 29 February.Some banks, like Standard Chartered Bank, claimed that they are not giving ex gratia payment for credit card holders as they didn’t charge “interest on interest". The payment is made in the public interest for loss or expenditure incurred where the Crown has no obligation of any kind or has no legal liability, or where the claimant has no right of payment or is not entitled to relief in … Yes. Credit card dues ; Automobile loans Personal loans to professionals; Consumption loans; Any borrower whose aggregate of all facilities with lending institutions is more than Rs. If you calculate the simple interest on the outstanding, it would be ₹18,000. The amount of money received depends on the outstanding balance and the interest rates. 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. Guidance on how ex-gratia payments are managed and resolved, and how actual and non-financial losses are assessed by UK Visas and Immigration, Immigration Enforcement and Border Force. What does interest waiver for your credit card dues mean | Photo Credit: Thinkstock Even if the loan has ended by now, the borrower will get pro-rata benefit for the period it was active between March 1 and August 31. Due to the financial stress, the Reserve Bank of India (RBI) offered six months’ moratorium to borrowers and credit card customers. If the interest rate is 14%, Rs 210 will be credited. 2 crore are eligible. The real payout could vary depending on different factors. are also eligible for coverage under the scheme, besides other specified categories of loans like consumer durables, automobiles, education, credit card dues, housing and personal loans to professionals. BP.BC.47/21.04.048/ 2019-20, dated 27.3.2020 and extended on 23.5.2020. Kerala reports 5,887 new Covid-19 cases; test positivity rate at 9.53 percent, Telugu star Ram Charan tests positive for Covid-19, New variant of Covid virus found in 6 UK returnees, Employees seek extension of benefits in case of Air India privatisation, 'Railways will meet its operating expenditure from its earnings', China to overtake US as world's biggest economy by 2028: Report, Spices export gets a boost amid Covid pandemic, crosses 7 lakh tonne in India, Delhi had highest per-capita economic loss due to air pollution in 2019: Lancet. F. No.2/12/2020 – BOA.I dated 23rd October, 2020), for grant of ex-gratia payment of difference between compound interest and simple interest for six months i.e. The moratorium allowed borrowers to postpone repayment of loans for six months. 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). Remove some to bookmark this image. are also eligible for coverage under the scheme, besides other specified categories of loans like consumer durables, automobiles, education, credit card dues, housing and personal loans to professionals. The new outstanding for the borrower after the moratorium ended would be ₹4.06 lakh. Yes. loan eligible for ex-gratia payment under the scheme? Some mentioned that they received a credit of a paltry sum of ₹10 or lesser amounts. Many thought their issuers had made a mistake. Sovereign gold bond's 10th tranche to open on Monday, price fixed at, Now, a price index for health and term insurance policies, Know why you shouldn’t ignore 143(1) intimation from tax department. What is the ex gratia payment to the borrower under the scheme announced by Government of India? People who have dues in credit cards are also entitled to claim this fund. These are just examples based on certain assumptions to explain the methodology. The RBI … No. Ex Gratia Payment To read the scheme announced by the Government of India (GoI), Ministry of Finance (vide no. The ministry made the scheme available to all borrowers and credit card customers, whether they availed moratorium or repaid on time. Sectors will not get the ex-gratia on 29 February 2020 could vary depending on different factors employees! On 29.02.2020 read the scheme announced by the Government of India ( RBI ) offered six months’ moratorium borrowers! 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