Supreme Court: Govt, RBI, Banks to decide on interest waiver, other loan reliefs in 2 weeks

The Supreme Court has reluctantly given 2 more weeks to Centre, RBI and banks to decide on interest waiver for borrowers and extension of loan moratorium period. The top court will now hear petitions seeking waiver of interest on loans during moratorium in the last week of September, while its interim order will continue where banks were restrained from declaring any more accounts as NPAs.

Making it clear that hearing will not be deferred any further, the apex court asked the Union Government, RBI and banks to come up with a concrete plan for sector-specific loan relief. Centre urged the court to consider the limited question of interest waiver, arguing that a comprehensive loan relief package was already being considered at the highest level.

While the State Bank of India (SBI) told the court that many fraud accounts were benefiting the court's restraint order on declaring of NPAs, the court remarked that all borrowers seeking relief can't be labelled as "adversarial".

Petitioners urged the court to stay the compound interest being levied by banks on the loans even as the government's relief package is awaited.

Petitioner CREDAI sought an extension of loan moratorium along with a stay on downgrading of borrowers. Referring to the Union Finance Minister Nirmala Sitharaman's statement on paucity of money to give relief, CREDAI submitted that it was the government's constitutional obligation to provide relief at the time of a global pandemic. 

Even as CREDAI cited examples from other nations where governments were pumping money to help the industry, the Indian Banks Association said it was duty of the Union Finance Ministry and not the RBI to provide relief.


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[chandrasekarmokkala]

we should not request for extension of moratorium instead we should fight for waiver of interest on loans during COVID period.reason is we are forcibly confined by the government to lockdown.we are denied our incomes. so it is our right to fight for our cause....

[venkateshsreeramulu]

so much of time was wsated nothing, it was not the domain of SC, why in the first place they should have heard the pil, they should have just thrown it in the dustbin, which is what it deserves.