CII president and banker Uday Kotak on Thursday opined against any waiver of interest during the moratorium period saying there cannot be an unequal game wherein banks pay the depositors but do not earn interest on loans. In his first press conference as CII president, Kotak was responding to a question on the ongoing case in the Supreme Court on waiver of interest during the moratorium period.
"...banks are intermediaries between depositors and borrowers. So, we (cannot) have a situation where borrowers get moratorium, banks have an obligation to serve depositors both on principal plus interest. Therefore, we cannot have a one-sided contract where we allow moratoriums on interest to the borrowing side," said Kotak.
People asking for moratorium on interest also need to keep in mind the interest of depositors, he said, adding "it cannot be an unequal game...do not think about saying, moratorium on what I borrow, but I must get full interest on deposits.
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