InvestorQ : Why are banks like SBI against the waiver of interest on loans as suggested by the Supreme Court?
Crowny Pinto made post

Why are banks like SBI against the waiver of interest on loans as suggested by the Supreme Court?

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Aditi Sharma answered.
4 months ago
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In its deposition before the Supreme Court, SBI contended that the interest on loans cannot be waived for the six months of the repayment moratorium allowed. SBI made this statement in an intervention application filed on Friday. Let me clarify here that the Supreme Court has not suggested waiver. Actually, a petition has been filed in the Supreme Court asking why the EMI deferral should not be converted into an interest waiver. The central government and the RBI are scheduled to file a detailed reply before the hearing on 17 June. However, judges have a different concern. Their question is whether the interest that has been deferred for three months will be added to charges payable later and whether there will be interest on the interest charged. It is only to this question that the court is seeking answers in 3 days. The moratorium expires on August 31.

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