Should the Supreme Court decide to waive interest during the moratorium period it may deal a further body blow to the financial sector in the country .There is a need to save the financial sector , save the economy whilst providing relief to the stressed . This calls for a nuanced and categorized approach to deal with the pains in different segments of Retail, Large Corporate and MSMEs. Within Retail there is a need to segregate by annual income to deal with different levels of liquidity and stress issues . A retail customer with an annual income of more than Rs 50 Lakhs paying EMI for a high end car cannot be treated in the same fashion viz a viz moratorium to an individual with an annual income of say upto Rs 6.00 lakhs . The liquidity and savings backstops are very very different and so are the pains and sustainability issue . A special segment categorized moratorium fund to pay off the EMIs of regular customers for different category of clients, for the moratorium period, against a loan of like amount repayable over say 12/18 months post the moratorium period would better serve the purpose . The need of the hour is to Provide Targeted relief ( not across board) whilst saving the financial sector and saving the economy. There is a crying need to address all the dimensions of the problem. The pains are different and so are the sustainability issues and one solution may not suit all.

https://economictimes.indiatimes.com/industry/banking/finance/banking/interest-waiver-during-loan-moratorium-supreme-court-lists-the-matter-for-first-week-of-august/articleshow/76419724.cms#:~:text=New%20Delhi%3A%20The%20Supreme%20Court,its%20position%20on%20the%20issue.&text=Banks%20also%20have%20to%20pay,RBI%20and%20the%20banks’%20views.

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