(a) whether the Government has decided to forego the interest on overdraft facility or cash
credit facility offered to a customer by financial institutions including banking sector; and
(b) if so, the details thereof?
(a) whether the Government has decided to forego the interest on overdraft facility or cash
credit facility offered to a customer by financial institutions including banking sector; and
(b) if so, the details thereof?
MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI S.S. PALANIMAN1CKAM)
(a)&(b): ` No, Sir. However. Reserve Bank of India in consultation with Government of India had issued
guidelines on One Time Settlement, which provide for simplified, non-discretionary and non-discriminatory
mechanism for compromise settlement of chronic non-performing assets. All public sector banks are directed
to implement uniformly these guidelines so as to achieve maximum recovery. Some concession on interest
component was given in the case of doubtful or loss cases.