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Interest rate waivers for loans during moratorium to harm depositors: AIBDA

It further added that historically, the sovereign covered the loan interest waivers, but in the current situation, a shortfall in revenues both at the Centre and state level will not permit the same

bank, loans, deposits, bankers, accounts, savings
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The AIBDA said media reports on the Supreme Court observations have been "extremely unnerving" and added that the same prompted it to make the depositors' stance known.

Press Trust of India
Interest rate waivers for bank loans during moratorium will harm the depositors, the All India Bank Depositors' Association (AIBDA) has said adding that interest waiver of any kind will dent the credit culture and also impact the financial health of banks.
Bank depositors will be "severely hit" if a waiver on interest rates is allowed, as banks would inevitably seek to cover their potential or actual loss of interest income through further cutbacks in the deposit interest rates, it said.
It further added that historically, the sovereign covered the loan interest waivers, but in the current situation, a shortfall in revenues both

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First Published: Jun 17 2020 | 2:14 PM IST

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