The Interest on loan moratorium case hearing scheduled in the Supreme Court today. The central government had asked for additional time from the court during the last hearing. They said that the central government will make a decision on this issue in 2-3 days. The decision will confirm whether banks can charge the interest on EMIs postpone under the moratorium scheme by RBI. The bank’s decision to charge interest on postponed EMIs challenges in the supreme court.
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Loan moratorium scheme shouted by the central government as instant relief in the Covid-19 pandemic. They have propagated and took full credit for this scheme as relief for loan borrowers in India. While offering this scheme they have not clarified whether the bank will charge additional interest of postponed EMIs. Instead of getting relief from this scheme now poor borrowers forced to pay more as interest on postponed EMIs. Now millions of people lost their job, many businesses shut. The banks move in sync with RBI for additional interest looks unfair.
Interest on loan moratorium issues actively looked from the government as per Solicitor General
This case represented by Solicitor General Tushar Mehta in the supreme court. While presenting this case Mehta said that the government actively considering the issue and hoped to take a decision in two-three days. The bench said that Mehta should try to give an affidavit to the concerned parties by Thursday. So that the matter can heard again on 5th October. Court also said the decision taken by the government should bring on record along with the affidavit.” Mehta said that the government serious on this issue and affidavit can filed after a decision from stakeholders in this case.
Let me tell you that the Supreme Court had extended the loan moratorium till 28th September. Until this period banks will not declare any accounts as Non-Performing Assets (NPAs). The loan moratorium offered by RBI considered as instant relief in the Covid-19 crisis. But the hidden facts like interest on postponed EMI not shared before with borrowers. Now banks are behind borrowers and asking for the interest.
Government looks serious in court but are they want to really offer the relief is a bigger question
When this matter came to court, the government said that the government is consulting the concerned persons and banks for a solution at the earliest. The apex court gave two weeks time to the Center and the Reserve Bank to file their reply and ask them to take a decision in regards before the timeline ends.
This case listed by a bench of Justices Ashok Bhushan, Justice R Subhash Reddy, and Justice MR Shah on 28th September. The bench hopes that the Center and the Reserve Bank would actively consider these issues. The bench also clarified that this is a final opportunity for the hearing and it will not be postponed after this.
