News
1
Sep
2020
Loan moratorium extendable for 2 years as per Covid impact, Centre tells SC
Solicitor General Tushar Mehta appearing for the Centre and the RBI, told the SC bench that several steps have been taken for stressed sectors and the economy has contracted by 23% due to the pandemic.
NEW DELHI: The Centre and RBI on Tuesday informed the Supreme Court that the moratorium period on repayment of loans amid the Covid-19 pandemic is “extendable” by two years.
Solicitor General (SG) Tushar Mehta, appearing for the Centre and the Reserve Bank of India (RBI), told a bench headed by Justice Ashok Bhushan that several steps have been taken for stressed sectors and the economy has contracted by 23 percent due to the pandemic. "We are in the process of identifying the distressed sectors to vary benefits as per the (Covid-19) impact of hit they have taken," the SG said.
The top court said that it will hear and decide on Wednesday about the bunch of petitions demanding waiver of interest, or waiver of interest on interest on the suspended EMIs (equated monthly instalments) during moratorium period.
The scheme, which was implemented to help borrowers tide over the Covid-19 crisis, ended on August 31. Borrowers had been permitted to defer loan repayments for a period of six months.
Solicitor General (SG) Tushar Mehta, appearing for the Centre and the Reserve Bank of India (RBI), told a bench headed by Justice Ashok Bhushan that several steps have been taken for stressed sectors and the economy has contracted by 23 percent due to the pandemic. "We are in the process of identifying the distressed sectors to vary benefits as per the (Covid-19) impact of hit they have taken," the SG said.
The top court said that it will hear and decide on Wednesday about the bunch of petitions demanding waiver of interest, or waiver of interest on interest on the suspended EMIs (equated monthly instalments) during moratorium period.
The scheme, which was implemented to help borrowers tide over the Covid-19 crisis, ended on August 31. Borrowers had been permitted to defer loan repayments for a period of six months.
https://auto.economictimes.indiatimes.com/news/industry/loan-moratorium-extendable-for-2-years-as-per-covid-impact-centre-tells-sc/77869698
The SC had earlier asked the Centre and the Reserve Bank of India (RBI) to review the move to charge interest on EMIs during the moratorium period introduced under the scheme.
The top court had said there was "no merit in charging interest on interest" for deferred loan payment installments during the moratorium period announced in wake of the Covid pandemic.
The SC had earlier asked the Centre and the Reserve Bank of India (RBI) to review the move to charge interest on EMIs during the moratorium period introduced under the scheme.
The top court had said there was "no merit in charging interest on interest" for deferred loan payment installments during the moratorium period announced in wake of the Covid pandemic.