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  • Category: Miscellaneous

    Did you receive cashback from bank as interest on interest or a prank is played on you.

    The title of thread may seem harsh but I am raising it based on what the bank has done with me.

    As promised the cashback for interest on interest started getting credited to accounts of people who have paid their EMI regularly and not availed the moratorium benefit.

    I got a message from bank yesterday that a refund of 'x' amount is credited to your loan account as Ex-gratia scheme from Government of India for interest on inerest and the same will be adjusted agianst your Overdue/Future EMI.

    Now, as per the message, this is clear that nothing is credited to my account and the name cashback is nothing but an adjustment to your future dues and I am not going to receive anything in my account actually. Then, why name it cashback? Refer it as reduction/adjustments to your future dues.

    It seems like a bad joke in the name of marketing where general people are taken for a ride as always.

    I would agree that paying less amount in future is equivalent to reduced liability but terming it as cashback is not appropriate.

    I am sure banks will claim the benefit from Government in liquid cash but they have adopted a smart move to not give anything to its borrowers by promising adjustment in future EMI.

    A borrower always has to pay out his liquid funds but the banks here is adopting adjustment method rather than actually crediting the sum.

    I have another loan on which I have not received any adjustment or cashback mesage as yet.

    I want to be proved wrong and consider this as a just one of the case that happened with me. Has anyone got any cashback from bank as interest on interest benefit, atual liquid cashback credit and not just adjustment mesage?
  • #714283
    This is really a joke. Getting money from govt and banks are not easy and this example is the ample proof that future adjustments to your dues are considered as the largess and cash as per their version. Shame on them, the banks have no money to credit extra amounts into the account and thus churned such cheap way of convincing the customers. i do agree the payments have to made in later date, but why they are withholding the cash back as promised. The book adjustment seems to be scam for me because just imagine if all banks are holding our money and rotating on interest with other customers, they are minting money with our cash back amount. Only the MP like Subramanyam Swamy can interfere and prevail upon the banks to adhere to the rules of crediting cash back and by mere book adjustments.
    K Mohan @ Moga
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #714286
    It would be appropriate to call it as money back, not cash back. Money can be in any form in the bank, but cash has to be in currency notes only. Banks will find it easy to adjust with the future payment than returning the money. The money remains with the banks for a few days only until the due date for next month's EMI.
    No life without Sun

  • #714304
    Cashback is not happening truly. In fact, the bank is getting additional money and they are getting advance. I am paying my EMIs regularly and I have not utilised the moratorium benefit. So I have paid normally and I am thinking that I am not eligible to receive any amount from the government as I have not paid any interest on interest. The government will give the excess amount paid by us due to differed payment in the form of interest on interest. I have not paid anything excess and hence I may not receive any amount. I don't think they don't give any incentive for paying as usual during COVID 19 period also.
    Many government schemes are going waste like this only. The benefit will never reach the person who has to receive it. It will go into the wrong hands and they will use it for their benefit. That is what these banks are also doing these days. The government should deposit that money directly into the accounts of the people. They should not send the whole amount to banks and asking them to deposit in the individual's account.

    always confident

  • #714306
    @Dr. Srinivasa Rao, you are very much eligible for cashback or whatever name they give it. This scheme has been brought to reward those who have been prudent and honest in paying off their liability even at times of crunch.

    This benefit is only for those who have not availed the moratorium benefit of deferring their liability, but paid out of their nose no matter the burden. You are very much eligible to get a refund/return/adjustment/compensation, etc but not cashback as it has been called.

    Now the banks are making a mockery of the scheme by adjusting it in the EMIs. I do not know who named it cashback? Information should have been very clear from the beginning so that false hopes are not nurtured by common man.

    My observation is that banks are shrewed in their working and they know this very well that, if they would actually credit the sum to the ultimate beneficiary account then, they will have to pay interest on that amount too, as the interest is also calculated on daily basis on the outstanding amount in your savings account everyday. So banks have been smart enough to avoid that thing by adjusting the benefit out of your liability by reducing it.

    Common man exactly means mango man who will always remain the same, he is expected to follow everything and expect nothing.

    Live before you leave.

  • #714318
    Well, I have received the ex-gratia (cashback ) in my loan account. The outstanding loan amount has reduced for me. All my friends and colleagues too have received the same. For your clarification, the Ex-gratia is being given by the central government and not banks. And for that matter, no one named it as cashback. The government is calling it as ex-gratia only. Moreover, how do you think the government will pay you? It cannot give you direct cash or send you a cheque. It has to adjust it through your outstanding loan only.
    Patience and perseverance pays

  • #714342
    Dhruv if your response is taken as granted then why my son's education loan which is being paid even during the lock down period was not given cash back so far nor adjustment done. By the way you are saying it is central govt largess but the banks would treat it as temporary relief and then charge us the same as and when the situation improves and we start paying regularly. Banks would not forgo their earning spree and in fact they are introducing new ways to squeeze us in the name of service charges and how they will forgo the interest and compound interest which has become handy for them to earn.
    K Mohan @ Moga
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #714343
    One of our friends old us that the EMI amount is now slightly reduced which is the effect of this cash back or whatever they call it. So it practically transforms to a reduced loan interest. Govt could do it in other way also by reducing the loan interest also but in that case the people who have taken a loan on a fixed interest basis would have to again approach the bank for relief. So, in all probability Govt might had thought to do it in an indirect way which makes a publicity also that some money is given back to the people who have taken loan from the banks. Everyone wants publicity and marketing nowadays why Govt would not do it.
    Thoughts exchanged is knowledge gained.

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