A deferred free lunch for good conduct

RBI could ask banks to reward customers who do not default by giving a discount at the end of the loan's tenure

The suggestion made by the Supreme Court that banks should not just allow borrowers to defer the payment of loan instalments due between March and August, but also waive the interest due during that period suggests that it is in the favour of a free lunch. But who pays the bill?

As we know, banks lend from their borrowings from depositors, and it comes at a cost. So if this suggestion is implemented the banks will continue to pay interest to their depositors but not charge any interest to their borrowers for 6 months. And the amount is significant at Rs