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Loan repayment moratorium: Mehrishi panel may suggest relief on compound interest

Loan repayment moratorium: Mehrishi panel may suggest relief on compound interest
Loan repayment moratorium: Mehrishi panel may suggest relief on compound interest
Brokerage firm Macquarie estimated that a waiver of interest will cost the banking system Rs 2.1 lakh crore while waiver of compound interest will cost about Rs 15,000 crore.

Synopsis

​The RBI had in March announced a three-month moratorium on principal and interest payments on loans beginning March 1 to provide relief to borrowers hit by the Covid-19 pandemic. This was later extended by another three months to August 31.

NEW DELHI: The committee headed by former comptroller and auditor general (CAG) Rajiv Mehrishi may suggest some relief on compound interest payments during the six-month loan moratorium that ended August 31, two people familiar with the panel’s deliberations told ET. It’s also likely to point out that the burden of any relief cannot be put on bank balance sheets or depositors, as they are also victims of the pandemic, said the people cited
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