Workshop on Scheme for grant of ex-gratia payment of the differential interest

While compound interest is the unquestionable reality of the world of banking and finance, somehow, courts have always been disapproving of the idea of “interest on interest”. After months of litigation in the Apex Court and a lot of confusion surrounding interest on interest being charged by the lenders on loan accounts whose payments were deferred under the moratorium scheme, the Central Government (CG), on October 23, 2020, introduced a Scheme for grant of ex-gratia payment of the difference between compound interest and simple interest, whereby the lenders will refund the differential interest, that is, difference between compound interest and simple interest during the 6 month period starting 1st March, 2020. The same will be taken over by the CG.

We intend to discuss the intricacies of the said scheme in this workshop (details provided below):

Date: 30th October, 2020 at 5.00 pm, IST. Will run for about 90-120 mins.

Where: On the internet, via Zoom Meetings

Please note that the webinar has a maximum capacity of 100, including the host, and entry is on first-come-first-enter basis.

Whether interactive?

Yes. Participants may post queries, either in advance or at the time of workshop. Participants may, based on feasibility, also be allowed to speak.

Fees: The fees for the workshop shall be INR 1000 per participant exclusive of GST (payable in advance).

For registration: Click on this link and fill the form-

For queries: Drop a mail to

What will be covered in the workshop?

  • Basics of the scheme including introduction, objective, rationale, scope etc.
  • Eligibility conditions
  • Getting into the intricacies- questions like- what kinds of loans will be excluded? How will MSME loans be dealt with?
  • Manner of calculating ex-gratia payments
  • Procedural aspects
  • Grievance Redressal Mechanism (including guidance on the communication issued by the IBA)
  • Modus operandi for claiming the payment from the CG
  • Answers to practical issues that the industry is facing
  • Answering your queries, of course.

Knowledge Resources:



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