The Reserve Bank of India vide its notification dated 7th April 2021 has directed all lending institutions to immediately put in place a Board-approved policy to refund/adjust the ‘interest on interest’ charged from the borrowers during the moratorium period, i.e. March 1, 2020 to August 31, 2020.
This reliefs shall be applicable to all borrowers, including those who had availed of working capital facilities during the moratorium period, irrespective of whether moratorium had been fully or partially availed, or not availed.
The Lending institutions shall disclose the aggregate amount to be refunded/adjusted in respect of their borrowers based on the above reliefs in their financial statements for the year ending March 31, 2021.
