The Supreme Court is expected to deliver its judgment in the loan moratorium case today, according to news agency ANI. A bench of Justices Ashok Bhushan, R Subhash Reddy and MR Shah will pronounce the verdict.
The Reserve Bank of India (RBI) had announced a loan moratorium scheme on March 27, 2020, in the wake of the Covid-19 pandemic. This allowed lending institutions to grant a temporary waiver to borrowers on payment of installments of term loans falling due between March 1, 2020, and May 31, 2020.
The six-month loan moratorium scheme was extended by the RBI.
A petition before SC sought a direction to declare the portion of an RBI notification, issued on March 27, "ultra vires to the extent it charges interest on the loan amount during the moratorium period...".
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