Interest-on-interest waiver: Crop, tractor loans not part of ex-gratia relief scheme
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.
Issuing additional frequently asked questions (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.
The benchmark rate applicable for such relief would be the contract rate, which is used by the credit card issuers for the purpose of EMI loans, it added.
Crop and tractor loans come under agriculture and allied activities loans and are not part of the eight segments or classes eligible under the scheme, it added.
The relief shall cover the following segments -- MSME loans, education loans, housing loans, consumer durable loans, credit card dues, automobile loans, personal loans to professionals and consumption loans, according to the FAQs released by the ministry earlier on Wednesday.
The Reserve Bank had on Tuesday asked all lending institutions, including non-banking financial companies, to ensure that the scheme of waiver of interest on interest for loans up to Rs 2 crore for the six-month moratorium period is implemented by November 5, as decided by the government.
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.
Loan accounts with sanctioned limits and outstanding not exceeding Rs 2 crore (aggregate of all facilities with all the lending institutions) will be eligible and such accounts should be standard in the books of the lending institutions as on cut off date of February 29, 2020.
The period reckoned for refund shall be from March 1 to August 21, 2020, that is six months period or 184 days, it said. The ex-gratia relief will be credited to the account of all eligible borrowers without any requirement to apply, it said.
As per the scheme, the lending institutions shall credit the difference between compound interest and simple interest with regard to the eligible borrowers in respective accounts for the said period irrespective of whether the borrower fully or partially availed the moratorium on repayment of loan announced by the RBI on March 27, 2020.
The scheme is also applicable on those who have not availed the moratorium scheme and continued with the repayment of loans. The scheme, which was announced as per the direction of the Supreme Court, is likely to cost the exchequer Rs 6,500 crore.
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Bengal: Over 55 pc turnout till 1 pm in repoll in 15 booths of 2 assembly seats
Kolkata (PTI): Over 55 per cent turnout was recorded till 1 pm in repoll in 15 booths of two assembly constituencies in West Bengal's South 24 Parganas district on Saturday, an official said.
Voting was underway more or less peacefully at 11 polling stations of Magrahat Paschim assembly constituency and four in Diamond Harbour, where the EC ordered repoll a day ago, following reports of electoral malpractices.
However, at booth number 179 at Chanda Primary School of Diamond Harbour seat, the Trinamool Congress alleged that a specially abled voter and his mother were harassed by central forces. The alleged incident sparked protests by party workers and locals.
The TMC claimed that the voter's mother, who had entered the booth to assist him, and her son were detained for a considerable time by central forces over alleged rule violations.
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"TMC leaders Manmohini Biswas and Pratik Ur Rahman reached the spot and led the protests, with residents terming the action unwarranted harassment. The matter has been taken care of by our officials there," an official of the poll body said.
Polling was otherwise peaceful across 15 booths in the area, he added.
Voting began at 7 am and will continue till 6 pm, the official said, adding that till 1 pm, the turnout was 55.57 per cent.
Magrahat Paschim registered 56.33 per cent voter turnout, while in Diamond Harbour, it was 54.9 per cent, a poll official stated.
Voting in these two assembly constituencies was held in the second phase of the state elections on April 29.
The repoll order was based on reports received from returning officers and observers of the two constituencies and "material circumstances", the Election Commission official said.
In Magrahat Paschim, TMC's Md Samim Ahamed Molla is pitted against BJP nominee Goursundar Ghosh, while Abdul Majid Halder of the Congress and ISF candidate Abdul Aziz Al Hassan are also in the fray.
TMC candidate Panna Lal Halder is contesting against Dipak Kumar Halder of the BJP in the Diamond Harbour seat. Goutam Bhattacharya of the Congress and CPI(M)'s Samar Naiya are among other candidates.
The BJP had alleged rampant electoral malpractices in certain polling stations of both the assembly seats under the Diamond Harbour Lok Sabha constituency, which is represented by TMC national general secretary Abhishek Banerjee.
The EC had deputed its special observer, Subrata Gupta, to fact-check the allegations from the ground.
The poll panel will decide on repolling in the Falta assembly constituency on Saturday.
The West Bengal assembly elections were held in two phases -- April 23 and April 29 -- amid unprecedented security arrangements.
Counting of votes will take place on May 4.
