NOIDA, April 8 -- Banks are debiting equated monthly instalments (EMIs) towards home loans, business loans and auto loans even from those customers who had availed of a three-month moratorium on all such payments, a reprieve announced by the Union ministry of finance in view of the Covid-19 pandemic and the 21-day nationwide lockdown imposed to prevent its spread.

Many borrowers such as flat buyers, businessmen and automobile owners in Noida and Greater Noida have written to the ministry of finance, highlighting the banks' non-compliance, but no action has been taken so far.

On March 27, the ministry of finance had suggested to the Reserve Bank of India (RBI) a moratorium on all loan repayments, and the interest entailed, for three months...