The Covid-19 crisis has turned life upside down for most families and businesses. With the Centre for Monitoring Indian Economy saying that...
The Covid-19 crisis has turned life upside down for most families and businesses. With the Centre for Monitoring Indian Economy saying that over 21 million salaried lost their jobs since April, the finances of many families are in complete disarray. Against this grim backdrop, comes the demand for interest on loans accrued under the Covid-19 moratorium to be waived.
On March 27, the Reserve Bank of India said that banks would be allowed to grant a moratorium on the payment of loan instalments due between March 1 and May 31. It was later extended till instalment due until August 31. Under fire from the Supreme Court after a businessman moved court also seeking a waiver of interest for loans under moratorium, the Centre said it has set up a committee to measure the economic impact of such a move. On Monday, the court gave the government until October 5 to present a plan on helping borrowers.
The question: is waiving interest the right solution?
If one goes by the statement of Reserve Bank of India Governor Shaktikanta Das, it isn’t. “The primary concern of the banking system is the protection of depositors’ money,” Das said at an event organised by the Federation of Indian Chambers of Commerce and Industry. “Ultimately,...
