This decision of the Union Cabinet will benefit those who have not paid EMI in the moratorium period.
The Union Cabinet took an important decision on Wednesday, so this time Diwali can be good for the borrowers. According to sources, the cabinet decided that the government would pay the interest on EMI during the moratorium period. Sources in CNBC-TV18 said that now the matter is in the court, then the government will give its information directly to the Supreme Court.
According to this proposal, the central government will pay interest on EMI on its behalf. Common people will not have to pay this interest. Sources said that the government’s scheme is only for unpaid EMI during 6 months of the moratorium.
The Reserve Bank implemented the moratorium period from March 1 to August 31 of this year due to coronavirus infection. That is, if during this time no EMI is unable to repay due to lack of money, then its loan will not be considered as default.
However, the bank started charging interest from customers on unpaid EMI during this period. Against which customers filed a petition in the Supreme Court. Hearing is going on in the Supreme Court in this case. The government had told the Supreme Court that it would pay a compound interest (interest on EMI) of only Rs 2 crore, including MSME and individual segments.
The government’s decision was welcomed by the Supreme Court last week. Now according to information received from sources, the Union Cabinet has also approved it. However, when the government informs the matter in the Supreme Court, then to what extent the government is going to forgive the interest.
Justices Ashok Bhushan, RS Reddy and MR Shah had asked the government to expedite the matter. The court also said during the hearing that Diwali of common people is in your hands.