'No merit in charging interest on interest' for deferred loan payments: SC

Complete waiver of interest during moratorium period might risk the financial stability of banks and this would put the interests of depositors in jeopardy, argued the govt in SC

The Supreme Court on Wednesday said there is "no merit in charging interest on interest" for deferred loan payment instalments during the moratorium period announced in wake of the coronavirus (Covid-19) pandemic. The apex court also asked the Central government to step up and take a stand over the issue related to charging interest on EMIs during the six month moratorium period granted during the pandemic.

The apex court asked the Central government and Reserve Bank of India to review the matter and slated it for further hearing in the first week of August. Indian Banks Association (IBA) to see