The Supreme Court (SC) on Monday said that a complete interest waiver on loans for the entire six-month moratorium period in 2020 is not possible. The court's verdict came in connection with the loan moratorium case.

The top court argued that a complete waiver of interest is not possible because lenders also have to pay interest to shareholders, depositors and account holders. "Waiver of complete interest is not possible because they (banks) have to pay interest to depositors like account holders and pensioners," the court said.The SC also refused to interfere with the government and Reserve Bank of India's (RBI) loan moratorium policy and declined to increase the period of relief to borrowers under the measure.

The Supreme Court (SC) on Monday said that a complete interest waiver on loans for the entire six-month moratorium period in 2020 is not possible. The court's verdict came in connection with the loan moratorium case.

The top court argued that a complete waiver of interest is not possible because lenders also have to pay interest to shareholders, depositors and account holders. "Waiver of complete interest is not possible because they (banks) have to pay interest to depositors like account holders and pensioners," the court said.The SC also refused to interfere with the government and Reserve Bank of India's (RBI) loan moratorium policy and declined to increase the period of relief to borrowers under the measure.