Compound interest waiver will cost Rs 6,500 crore to govt: Official

Cabinet decision soon on setting up a development finance institution and framing a new policy on public sector enterprises

The Centre’s decision to fund the compound interest payment for small borrowers during the six-month moratorium period will come at a cost of Rs 6,500 crore, said a senior government official on Tuesday.
 
The Supreme Court is scheduled to hear a batch of petitions on Wednesday demanding waiver of interest charged by banks on instalments that have been deferred for repayment by the Reserve Bank of India through a six-month moratorium imposed in March. The matter was listed for hearing on Tuesday, but deferred.
 
The government has told the apex court it is ready to bear the burden