Post lock down where loan repayments got a 3 month holiday, interest charge on the unpaid interest for the moratorium period comes as an added burden to borrowers. Court asks banks not to charge interest on interest, while banks are telling that, they will be losing 2 lakh crores if they don’t charge interest. Who is going to pay this interest?
Banks are giving a suggestion that, if you ask us not to charge interest on the money we have lent, then give us the option to not pay interest to our deposit holders. FD interest is now at stake. How the situation is going to get resolved?
If government pays the bank, it will want to recover the money through some new form of taxes. Either way the population has to bear the pain for the lock down.