One-Time Interest Waiver Scheme for Settlement of Outstanding Payments

National Securities Depository Limited, vide Circular No. NSDL/POLICY/2026/0049 dated April 01, 2026, has announced an important update regarding a one-time interest waiver scheme for settlement of outstanding payments.

Key Details of the Update –
• The circular introduces a One-Time Interest Waiver Scheme as a time-bound and non-precedential measure to help eligible Participants settle long-pending outstanding dues and close legacy balances within a specified period.
• The objective of the Scheme, as set out in the Annexure, is to enable eligible Participants to settle such dues by availing a one-time waiver of interest, subject to the prescribed terms and conditions.
• The Scheme period runs from April 01, 2026 to June 30, 2026 (both days inclusive), and the benefit is available only during this window.
• A Participant is eligible to avail the waiver only where the outstanding dues pertain to periods prior to January 31, 2026 and the entire principal outstanding is paid within the Scheme period.
• The extent of relief under the Scheme is a 100% waiver of interest levied on eligible outstanding dues, provided the Scheme conditions are fulfilled. However, there is no waiver of the principal amount, which must be paid in full.
• The circular makes full and final payment of the eligible principal within the Scheme period a condition precedent for grant of the waiver. It specifically clarifies that partial payments or installment payments will not qualify for the interest waiver.
• Participants availing the Scheme must also continue to discharge all current and future dues within the timelines prescribed under the applicable contracts, Bye-laws and Business Rules. This means the Scheme is limited to waiver of interest on eligible past dues and does not relax ongoing compliance obligations.
• In cases where accounts are under legal proceedings, including insolvency, liquidation, or similar processes, eligibility will be considered case-by-case, subject to internal approvals of National Securities Depository Limited and applicable law. The circular also preserves all rights and remedies of National Securities Depository Limited in such matters.
• The operational process requires the Participant to obtain the principal outstanding from National Securities Depository Limited, remit the entire principal in a single tranche during the Scheme period, and upon confirmation, the interest component on eligible dues will be waived and the account updated accordingly.
• The circular further clarifies that it must be read together with the Depositories Act, 1996, the National Securities Depository Limited Bye-Laws, Business Rules, and applicable agreements with Participants. In case of inconsistency, the Act and Bye-Laws shall prevail. It also states that the Scheme is a one-time administrative measure, does not create any precedent, and may be modified, amended, withdrawn, or interpreted by National Securities Depository Limited in accordance with applicable law.

Actions if Any –
• Eligible Participants should obtain details of their principal outstanding from National Securities Depository Limited for dues relating to periods prior to January 31, 2026.
• Participants seeking to avail the Scheme must make full payment of the eligible principal amount in a single tranche within the Scheme period.
• Participants should continue to ensure timely payment of all current and future dues in accordance with the applicable contracts, Bye-laws and Business Rules.
• For outstanding dues and the settlement process under the Scheme, Participants may write to shivshankar.nadar@nsdl.com.

Compliance Deadline –
The One-Time Interest Waiver Scheme remains open from April 01, 2026 to June 30, 2026, and the entire eligible principal outstanding must be paid in full within this period in a single tranche to avail the 100% waiver of interest on eligible dues. This deadline applies to settlement of outstanding dues pertaining to periods prior to January 31, 2026.