State Bank of India to get Rs 974 cr for 'interest on interest' payment

The cabinet committee on economic affairs (CCEA) has also approved an equity infusion of Rs 1,500 crore in IREDA

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