EX Gratia Scheme of Govt of India: Credit card holders are getting good news these days. They are getting a message from the card issuing bank or institution these days that the money has been deposited in their account of the government’s EX Gratia Scheme. Many users feel that the bank has made a mistake and they have accidentally deposited the money in their account. Also Read – Loan Moratorium Case: Hearing in Supreme Court in case of interest on interest postponed till 18 November
This is being done because you have paid your credit card bill on time. Some customers who have surrendered the card during the Moratorium period are also getting these messages. Actually, according to the government’s plan, the bank is giving money under this EX Gratia Scheme on the outstanding due on the date of February 29 on your credit card. Also Read – Loan Moratorium: Interest on the interest deposited in the customers account, check this way
If you purchased with your credit card before 29 February 2020 and paid it after 29 February, then you will get money under this scheme. Also Read – Loan Moratorium: Banks started returning ‘Interest on Interest’ amount to the accounts of the borrowers
What is EX Gratia Scheme of Govt of India
In fact, during the lockdown imposed due to Corona epidemic in the country, the government had given an exemption to postpone the payment of 6 EMIs to the borrowers. So that the loan does not put financial burden on the customers. But banks later added interest on the interest portion of these deferred EMIs. That means compound interest. Because of this the matter reached the Supreme Court. The Supreme Court spoke of the resolution of the matter and said that it will pay the interest amount on the interest.
With this, the government said in the Supreme Court that during this lockdown, customers paying regular EMI should get benefit. For this, he brought the EX Gratia Scheme of Govt of India scheme. Under this, cashback was given to those who paid EMI regularly.
Cashback case on credit card
Credit card is also a type of loan. Therefore, the government also gets the benefit of EX Gratia Scheme on its dues. If you have made regular payment of arrears, you will get cash back and if you have not paid the arrears, during the lockdown you will get exemption from interest charged.