financial burden as this would also impact the depositors interest the government decided not to waive it for big borrowersthe government therefore decided that the relief on waiver of compound interest during the sixmonth moratorium period shall be limited to the most vulnerable category of borrowers the ministry said this would mean loans up to rs 2 crorethe rbi and the centre had earlier argued that the moratorium was merely deferring loan instalments to a future date and that it did not mean waiving either interest on the amount due during the sixmonth period or interest on the interest accrued during the period on the principalit had said that borrowers understood the difference between the waiver in the interest on loan and the deferment of payment of instalments for that loan and therefore a majority of the borrowers have in fact not taken the benefit of the moratoriumif the government were to consider waiver of interest on all types of loan advances to all categories of borrowers corresponding to the sixmonth period for which the moratorium that is deferment of payment of instalments was made available under the relevant rbi circulars the estimated amount waived would be more than rs 6 lakhs crore the ministry saidit said that if the banks were to bear the burden a substantial part of their net worth would be wiped out rendering most banks unviable this was one of the main reasons why waiver of interest was not even contemplated and only payment of instalments was deferred it saidover half of the state bank of indias net worth would be wiped out if interest was waived for six months the government said by dhananjay mahapatra tnn published on oct 3 2020 at 0950 am ist telegram facebook copy link be the first one to comment comment now comments comment now read comment 1 all comments post post find this comment offensive choose your reason below and click on the submit button this will alert our moderators to take actions reasons for reporting foul language defamatory inciting hatred against a certain community out of context spam others report join the community of 2m industry professionals subscribe to our newsletter to get latest insights analysis download etauto app get realtime updates save your favourite articles scan to download app msme borrowers interest waiver the state bank of india bank of india rbi moratorium homenewsindustrycentre ready to waive interest on interest during moratorium