Govt not interested in footing Rs 8,000-cr moratorium bill for banks

Govt is of the view that the onus of reimbursing compound interest charged to customers does not fall on entirely on itself, said a top govt official

Banks have requested the government to foot the bill of about Rs 8,000 crore that they will have to return to the customers on account of moratorium interest, but the finance ministry seems to be not interested.

The Indian Banks’ Association (IBA) on March 26 wrote a letter to the government seeking representation for enhancing the scope of “ex-Gracia scheme to cover the additional refund out of the Supreme Court Order.”

One senior public sector banker explained that the stance has been taken now as the penal interest also has to be refunded.

“Last time, only the compound interest or