The Union Cabinet is understood to have given its go-ahead to the compound interest waiver for borrowers for the six-month moratorium period announced by the Reserve Bank, government sources said.

The government had filed an affidavit in the Supreme Court in a case concerning the moratorium, stating that it would waive interest on interest on loans up to Rs 2 crore for a select category of borrowers.

The apex court has asked the government to present a clear plan on the scheme at the next hearing on November 2. The government will now inform the court about the approval from the Cabinet and subsequent directives in this regard.

The Centre expects an expenditure of Rs 5,500-6,000 crore on the proposed waiver.

The Union Cabinet approved a productivity and non-productivity linked bonus for 2019-2020, which will benefit over 3 million non-gazetted employees.

The total financial implication will be Rs 3,737 crore, Union minister for information and broadcasting Prakash Javadekar said. “This will boost demand, just ahead of the festive season… This was one major concern of the middle class, which has been addressed now,” he added.

The bonus to 1.697 million non-gazetted employees of commercial establishments like railways, posts, defence production, Employees Provident Fund Office, Employees State Insurance Corporation, etc will have financial implication of Rs 2,791 crore.

The ad-hoc bonus given to 1.37 million non-gazetted central government employees will have financial implication of Rs 946 crore.

Payment of bonus to non-gazetted employees for their performance in the preceding year is usually made before Durga Puja or Dussehra. The government is announcing the productivity-linked bonus and ad hoc bonus for its non-gazetted employees to be disbursed immediately, the government said.

Boosting demand among government employees has been high on the government’s agenda, even as dearness allowance for central employees had been suspended till next year.

News Source: Livemint


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