Govt asks banks to share details of ‘interest on interest’ charged

The finance ministry has asked banks to share details of their board-approved policy on refund or adjustment of ‘interest on interest’ charged to borrowers during the moratorium period March to August 2020. An official confirmed the development and said that information has been sought on the methodology used for calculating the amount to be refunded or adjusted for different facilities. “Banks are expected to provide details before the end of this quarter. …We have asked if the Indian Banks Association (IBA) has formulated any policy in this regard in consultation with other industry participants,” the official said.