Lenders want govt to offer moratorium interest relief to borrowers

Waiver may cost banks Rs 10,000 cr, says IBA

A waiver of compound interest payments during the six-month loan moratorium period will cost banks close to Rs 10,000 crore, according to submissions made by lenders to the committee headed by former comptroller and auditor general (CAG) Rajiv Mehrishi.

The panel, formed by the government earlier this month, was mandated to measure the impact of waiving interest and interest on interest on the national economy and financial stability. It was also supposed to give suggestions to mitigate the “financial constraints of various sections of society” amid Covid-19.

The Indian Banks’ Association (IBA) has told the committee that instead of a waiver, it