New Delhi: The Supreme Court has given interim relief to the people, especially people who own MSMEs by extending loan moratorium. The Supreme Court has postponed loan repayment. SC said. ‘No bank loan account is to be declared NPA for the next two months.
The Supreme Court is hearing petitions challenging the Reserve Bank of India’s move to charge interest on term loans during the moratorium period introduced in light of the COVID-19 pandemic.
Justices Ashok Bhushan, R Subhash Reddy and MR Shah are hearing petitions challenging the Reserve Bank of India’s move to charge interest on term loans during the moratorium period introduced in light of the pandemic.
The Court conducted a day long hearing yesterday when the Bench heard arguments advanced by the petitioners. Today, Solicitor General Tushar Mehta and Senior Counsel V Giri for RBI are scheduled to make their submissions.
Mehta said, ‘steps needed to be taken by the authorities required to take note of following aspects:
Reduction of immediate pressure of payment of installments, Revival of all possible sectors, Restructuring of stressed assets and Banking sector.
In the wake of the pandemic, the RBI issued a circular on 27 March granting banks to pay installments for a period of three months. On 22 May, the RBI announced an extension of a three-month extension till 31 August, resulting in a six-month extension on loan EMI.
A petition was also filed in the Supreme Court, it was said that banks are charging interest along with granting EMI, which is illegal. Most of the banks are charging interest on interest.