Interest waiver on loans in moratorium: Uday Kotak says it is unfair to seek moratorium on loans but expect full interest on deposits

Name: Interest waiver on loans in moratorium: Uday Kotak says it is unfair to seek moratorium on loans but...
Uploaded: 2020-06-04T16:00:12+05:30
Description: Kotak concurred with the Reserve Bank of India, which said that borrowers who avail moratorium on their bank loans will have to pay the interest accrued during that period.

Kotak concurred with the Reserve Bank of India, which said that borrowers who avail moratorium on their bank loans will have to pay the interest accrued during that period.

Moneycontrol News

June 04, 2020 / 19:17 IST

Managing director of Kotak Mahindra Bank, Uday Kotak, on Thursday said that it is unfair to allow a moratorium on interest on borrowing while expecting full interest on deposits.

Kotak was on Wednesday elected as the President of the Confederation of Indian Industries (CII).

"Banks are intermediaries between depositors and borrowers. We cannot have a one-sided contract where we allow a moratorium on interest on borrowing and expect full interest on deposits too," he said.

He said banks have to serve borrowers but have a bigger duty to serve their depositors.

"Even in case of a moratorium on borrowing, banks have an obligation to serve depositors both on principal and interest," the newly-appointed CII President said, adding that depositors are the core of the banking system and their trust must be nurtured.

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Interest waiver on loans in moratorium: Uday Kotak says it is unfair to seek moratorium on loans but expect full interest on deposits

Kotak concurred with the Reserve Bank of India, which said that borrowers who avail moratorium on their bank loans will have to pay the interest accrued during that period.

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