
Moratorium period on loan repayment extendable by two years: Centre, RBI tell SC
The Centre and Reserve Bank of India (RBI) on Tuesday told the Supreme Court that the moratorium period on repayment of loans amid the COVID-19 pandemic is extendable by two years.
On March 27 the had RBI permitted all commercial banks (including regional rural banks, small finance banks and local area banks), co-operative banks, all-India Financial Institutions, and NBFCs (including housing finance companies and micro-finance institutions) (referred to hereafter as “lending institutions”) to allow a moratorium of three months on payment of installments in respect of all term loans outstanding as on March 1, 2020.
In May, the RBI announced extension of loan moratorium by 3 more months to August 31.
Solicitor General 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.
The bench said that it would hear on Wednesday the pleas which have raised the issue of interest being charged on instalments which have been deferred under the central bank’s scheme during the moratorium period amid the COVID-19 lockdown.
The apex court had earlier asked the Centre and the RBI to review the move to charge interest on deferred EMIs during the moratorium period.
Petitioner Gajendra Sharma has sought a direction to declare portion of the RBI`s March 27 notification as ultra vires to the extent it charged interest on the loan amount during the moratorium period.
About Post Author
The India Wire Team
Related
More Stories
IndiGo ranked 6th largest carrier in the world by passenger volume in OAG Frequency & Capacity Statistics for March 2022
India’s leading carrier - IndiGo has been ranked the 6th largest airline by passenger volume in the OAG Frequency & Capacity...
Covishield &Covaxin prices slashed to Rs.225 from Rs.1200 and Rs.600
Vaccine makers Serum Institute of India and Bharat Biotech have reduced the price of coronavirus vaccines Covishield and Covaxin to...
Contract Management Software Market Size is surging with Integration of advanced technologies such as artificial intelligence by 2027
According to the new research report published by The Insight Partners, titled “Contract Management Software Market - Global Analysis and...
Special Story:How E-Governance will play an important role in India’s infrastructural development?
Special Story:How E-Governance will play an important role in India’s infrastructural development?
Budget Session: Rahul Gandhi to be first speaker at Debate on President’s address from today
According to sources, 12 hours have been allotted to opposition parties to express their reply to the Presidential address during...
This government has bulldozed many things, but also have been stopped from bulldozing so many things’ : Shri Kumar Ketkar Member of Parliament Congress
New Delhi, All India Bank Employees’ Association invited Shri Kumar Ketkar Member of Parliament Congress, to address the attendees at the AIBEA’s ongoing...
Average Rating