The Supreme Court Tuesday issued notices to the Centre and Reserve Bank of India on a plea against the charging of interest on loans during the moratorium. The RBI had announced a moratorium on all loans to provide relief during the lockdown. However, this would effectively increase the financial burden on the borrowers as it calculated the interest on the outstanding amount for the deferment period and that too on a compound basis. As the SBI had stated while offering a three-month moratorium that for a loan of ₹30 lakh with a remaining maturity of 15 years, the net additional interest would be approx. ₹2.34 lakh, equal to 8 EMIs. Simply put, for a moratorium period of three months, a borrower would have to pay eight more EMIs.