A balanced approach to waiving interest during moratorium4 min read . Updated: 21 Sep 2020, 04:19 PM IST
- It will be best to decide who should get a waiver and who shouldn’t on a case-by-case basis depending on the impact suffered due to covid.
In March 2020, the Reserve Bank of India (RBI) allowed a moratorium of three months on payment of instalments of loans and later extended it by three months till 31 August 2020. This meant regulatory forbearance for banks for maintaining the loan accounts as standard, and for borrowers for not impacting the credit rating. The borrowers had the option to pay (the principal amount, interest and the interest on interest) immediately after the moratorium or get it adjusted in future instalments with or without an increase in the repayment period.
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