×
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT

SC gives more time to Centre, RBI to decide on interest on loan during moratorium

Last Updated 28 September 2020, 08:07 IST

The Supreme Court on Monday gave further time to the Centre and RBI to decide upon the issue of charging interest on interest accrued on loan during loan moratorium, introduced due to Covid-19 pandemic.

Solicitor General Tushar Mehta, appearing for the Centre and the RBI, said the government was at an advanced stage of taking a decision in the matter. He tendered apologies for seeking more time, saying certain things were beyond his control.

A bench presided over by Justice Ashok Bhushan took on record submission by Mehta and put the matter for consideration on October 5.

On September 10, the court gave two weeks time to the Union government as well as the RBI as it was then submitted that "the Union Government on the highest level is considering all issues".

The court had then asked the government to consider the relief sought by not only the individual borrowers but by different sectors.

The bench had asked Mehta to take specific instructions on charging of compound interest and credit rating and downgrading during moratorium period, for enabling the court to pass appropriate order on the next date of hearing.

The court had on September 3, passed order restraining banks from declaring those accounts as non performing assets which were not declared so till August 31.

A batch of PILs were filed by Gajendra Sharma and others, contending that the banks were debiting interest on interest and credit rating was being downgraded which may have an adverse effect on various account holders.

ADVERTISEMENT
(Published 28 September 2020, 08:07 IST)

Follow us on

ADVERTISEMENT
ADVERTISEMENT