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Scheme for grant of Ex-gratia payment of difference between Compound Interest and Simple Interest for 6 months to borrowers in specific loan account (1 March 2020 to 31 August 2020)
 
EC No. 298 /DoS-46/2020-21              28 October 2020 
Ref. No. NB. DoS/ Pol/2762/Policy/J-1/2020-21
The Chairman, All RRBs
The Managing Director, All State Cooperative Banks
The Managing Director / Chief Executive Officer, 
All District Central Cooperative Banks
 
Dear Sir/Madam
 
1.  Scheme for grant of Ex-gratia payment of difference between Compound Interest and Simple Interest for 6 months to borrowers in specific loan account (1 March 2020 to 31 August 2020)
We enclose herewith a copy of the Notification F.No.2/12/2020.BOA.I dated 23 October 2020 issued by the Department of Financial Services, Ministry of Finance, Government of India on the above subject.
 
2.  The Government of India vide the aforesaid notification has approved “Scheme for grant of ex-gratia payment of difference between Compound Interest and Simple Interest for 6 months to borrowers in specific loan account (1 March 2020 to 31 August 2020).” The borrowers of 8 segments/classes of loans (viz., MSME, Education, Housing, Consumer durable, Credit Card, Automobile, Personal loans to professionals and Consumer loans) who have the loan accounts having sanction limits and outstanding amount not exceeding Rs.2 crore (aggregate of all facilities with lending institutions) as on 29 February 2020 are eligible for the same. The individual banks have to pay difference between Compound Interest and Simple Interest for 6 months to borrowers in respect of the aforesaid loan accounts as ex-gratia payment.
 
3.  The bank has to make the payment to the borrowers as per the enclosed scheme guidelines and complete the same before 5 November 2020.
 
4.  Individual banks may lodge their claims for reimbursement latest by 15 December 2020.  The claims are to be submitted to the designated officer / Cell at the State Bank of India.
 
5.  We advise you to ensure completion of the above process as indicated before 5 November 2020 and prefer claims to SBI latest by 15 December 2020.
 
 6. Please acknowledge the receipt of this circular to our Regional Office in your State/UT.
 
Yours faithfully 
Sd/-
(K.S. Raghupathi)
Chief General Manager
Encl :- as above
 
Endt. No. NB. DoS/Pol/2763-2772/Policy/J-1/ 2020-21 of date.
 
Copy together with copy of GoI notification forwarded for information to: -
1. The Registrar of Cooperative Societies, Co-operation Department of all the States.  
2. The General Manager (RRB Division), All Sponsor Banks.  
3. The Executive Assistant to the Chairman, National Bank for Agriculture and Rural Development, Head Office, Mumbai.
4. The Executive Assistants to the Deputy Managing Directors, National Bank for Agriculture and Rural Development, Head Office, Mumbai 
5. The Chief General Manager/ Officer-in-Charge, NABARD, All Regional Offices. 
6. The Registrar of Cooperative Societies, Co-operation Department of all the States.  
7. The General Manager (RRB Division), All Sponsor Banks.  
8. The Secretary, Secretary’s Department, National Bank for Agriculture and Rural Development, Head Office, Mumbai.
9. The Principal/Director/Joint Director, All Training Establishments.
10. The Secretary, DFS, Ministry of Finance, Government of India, New Delhi 
(L.M. Tyagarajan)
Assistant General Manager
Encl :- as above