COVID lockdown Anniversary: From Loan Moratorium to Atmanirbhar Bharat, 5 big announcements by Modi govt to ease common man’s distress

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New Delhi: March 24, 2021, marks the one yr of the nationwide lockdown, introduced by Prime Minister Narendra Modi.

COVID-19 introduced extreme financial penalties whereas many industries witnessed transformation in the course of the previous yr. The common man too confronted a number of hardships in the course of the COVID-19 lockdown that ranged from job losses and diminished money flows to home budgetary constraints.

However, well timed intervention by the federal government and monetary establishment just like the RBI stored issues on easy crusing for the common man.  Here’s wanting again at main announcements made by the federal government and RBI to ease the burden of the common man in the course of the lockdown.

EMI Moratorium

For the Indian mortgage debtors, EMI moratorium was an important time period that dominated the final yr. The RBI had on March 27, 2020 issued the round which allowed lending establishments to grant a moratorium on fee of instalments of time period loans falling due between March 1, 2020, and May 31, 2020, due to the pandemic. Later, the moratorium was prolonged until August 31 this yr. The pleas pertained to charging of curiosity on curiosity by banks on EMIs which haven’t been paid by debtors after availing the mortgage moratorium scheme of RBI throughout March 1 to August 31. A PIL was later filed within the SC in search of instructions to declare the notification dated March 27, 2020 issued by Reserve Bank of India as extremely vires to the extent it fees curiosity on the mortgage quantity in the course of the moratorium interval. After a number of rounds of listening to, Centre knowledgeable the SC that lenders have been directed to credit score within the accounts of eligible debtors the distinction between compound curiosity and easy curiosity collected on loans of up to Rs 2 crore in the course of the RBI’s mortgage moratorium scheme. While the Supreme Court has directed the federal government guarantee that all steps be taken to implement its choice to forego curiosity on eight specified classes of loans paid upto Rs two crore in view of the coronavirus pandemic, the Centre maintains that if it have been to take into account waiving curiosity on all of the loans and advances to all classes of debtors, then the quantity foregone can be greater than Rs 6 lakh crore.

Atmanirbhar Bharat

Among the key monetary initiatives that the federal government launched in the course of the COVID-19 Crisis, was the Atmanirbhar Bharat. The most up-to-date in phrases was the Aatma Nirbhar Bharat 3.0 Stimulus. Union Finance Minister Nirmala Sitharaman has introduced 12 key measures, as a part of Government of India’s stimulus to the financial system, beneath Aatma Nirbhar Bharat 3.0. The web stimulus introduced beneath Aatma Nirbhar Bharat 3.0 quantities to Rs 2.65 Lakh crore. The whole stimulus introduced by the Government and Reserve Bank of India November, to assist the nation tide over the COVID-19 pandemic, works out to Rs 29.87 lakh crore, which is 15% of nationwide GDP. Out of this, stimulus value 9% of GDP has been offered by the federal government.

Lower price of EPF subscription

Various measures have been introduced from time to time to present aid to the employers and workers of the institutions lined beneath the EPF & MP Act, 1952 distressed by Lockdown to stop unfold of COVID-19 and different disruptions due to Pandemic. The authorities had introduced the discount in statutory price of PF contributions from 12% to 10% for wage months May, 2020, June, 2020 and July, 2020 for all class of institutions lined beneath the EPF & MP Act. Reduction in price of EPF contributions from 12% to 10% of primary wages and Dearness allowances WAS meant to profit each 4.3 Crore workers/members and employers of 6.5 lakhs institutions to tide over the instant liquidity disaster to some extent. As a outcome, the worker shall had the next take residence pay due to discount in deduction from his pay on account of EPF contributions and employer additionally had his legal responsibility diminished by 2% of wages of his workers. If Rs.10000/- is month-to-month EPF wages, solely Rs.1000/- as an alternative of Rs.1200/- was deducted from worker’s wages and employer paid Rs.1000/- as an alternative of Rs.1200/- in direction of EPF contributions.

Income Tax aid for Developers and Home Buyers

Differential between circle price and settlement worth in actual property revenue tax was being elevated from 10% to 20%. This was for major sale of residential items up to Rs 2 Crore (from date of announcement of the scheme, until June 30 2021).  The Income Tax aid was geared toward offering incentive to center class to purchase houses.

Emergency Credit Line Guarantee Scheme

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Emergency Credit Line Guarantee Scheme for MSMEs, companies, MUDRA debtors and people (loans for enterprise functions), has been prolonged until March 31, 2021. Credit assure assist scheme is being launched for Healthcare sector and 26 sectors careworn due to COVID-19. Entities will get extra credit score up to 20% of excellent credit score; reimbursement could be accomplished in 5 years (1 yr moratorium + 4 years reimbursement). This announcement got here beneath the Atmanirbhar Bharat 3.0.





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