Picture credits:The Hindu
In the case of Gajendra Sharma vs UOI, the Reserve Bank of India (RBI) tells the Top Court today that it has advised all banks to be guided by the government scheme of interest pay-back relating to the grant of ex gratia payment of difference between compound interest and simple interest for six months to borrowers in specified loan accounts.
A Bench led by Justice Ashok Bhushan will be hearing the case on November 2. The scheme is meant to bring “additional relief” to borrowers hit by the financial distress due to the pandemic situation. The scheme is said to cover MSME, education, housing, consumer durables, credit card, auto, personal and consumption loans.