Back to Career News

SBI to get ₹974cr for interest of interest payment

January 20, 2022

SBI to get ₹974cr for interest of interest payment

The Union Cabinet on Wed­nesday approved an additional payment of about ₹973 crore on account of pending claims for government’s compound interest waiver scheme that reimbursed ‘interest-on-interest’ charged on small ticket loans of up to ₹2 crore.

The Center had received total claims of ₹6,473 crore from 238 million borrowers under the “scheme for grant of ex-gratia payment of difference between compound interest and simple interest for quite some time to borrowers in specified loan accounts(between March 3, 2020 to August 31, 2020)”, against an estimated ₹5,500 crore. The government had likewise made provision of ₹5,500 in the Union Budget 2020-21 by extrapolating the share of State Bank of India (SBI) – the nodal agency for the plan – and scheduled commercial banks for the same.

Under the scheme, micro, small and medium enterprises (MSME), housing, education, customer durables, auto, and credit card dues of up to ₹2 crore were eligible, irrespective of whether or not the borrower had availed a moratorium or not.

The Center had transferred the entire budgeted ₹5,500 crore to SBI for reimbursement to lending institutions. The SBI has received consolidated claims of about ₹6,473.74 crore from lending institutions, and the Cabinet has now granted approval to disburse the remaining ₹973.74 crore to the state-owned lender. The lender needed to settle claims by November 2021.

Recommended for you ...

Reserve Bank to promote rupee as preferred currency for global trade
Reserve Bank to promote rupee as preferred currency for global trade

August 09, 2022

IDFC First Bank partners LetsVenture to support start-ups
IDFC First Bank partners LetsVenture to support start-ups

August 09, 2022

SFB allowed to offer more forex products
SFB allowed to offer more forex products

August 09, 2022

Chat on WhatsApp