 "SBI")
The Union Cabinet on Wednesday approved an additional payment of about Rs 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 Rs 2 crore.
The Centre had received total claims of Rs 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 six months to borrowers in specified loan accounts (between March 3, 2020 to August 31, 2020)”, against an estimated Rs 5,500 crore. The government had also made provision of Rs 5,500 in the Union Budget 2020-21 by extrapolating the share of State Bank of India (SBI) — the nodal agency for
