Union Government Decides To Waive Compound Interest For Moratorium Period

The Centre has decided to waive compound interest on loans of MSMEs for the moratorium period of six months. Besides, loans upto Rs 2 crore by individual borrowers will also be covered under this decision. In an affidavit in the Supreme Court, the government said it has decided to "continue the tradition of hand-holding the small borrowers." It added SEBI has already provided relaxations in norms of recognizing loans as NPA.