File photo of the Supreme Court of India. (Image credit: PTI)
The Reserve Bank of India had submitted the notification in March after the nationwide lockdown was imposed to curb the spread of the pandemic and had granted the deferred payment facility of installments to borrowers and the plan finalized on August 31st.
- News18.com
- Last update: September 10, 2020 3:12 PM IST
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Continuing with its provisional order, the Supreme Court on Thursday extended the loan repayment moratorium until September 28, which ordered banks not to declare any loans as NPA (non-performing asset) due to non-payment of installments during the period.
The Reserve Bank of India had submitted the notification in March after the nationwide lockdown was imposed to curb the spread of the pandemic and had granted the deferred payment facility of installments to borrowers and the plan finalized on August 31st.
The high court had previously asked the Center and the Reserve Bank of India (RBI) to review the measure to charge interest on EMIs during the moratorium period introduced under the scheme due to the Covid-19 pandemic.
The higher court had said that there was “no merit in charging interest on interest” for deferred loan installments during the announced moratorium period in the wake of the Covid-19 pandemic.
Attorney Vishal Tiwari, in his guilty plea, had sought an order to declare the part of the RBI’s March 27 notice as “ultra vires” to the extent that it charges interest on the loan amount during the moratorium period. and said that it created difficulties for the petitioner as a borrower. and creates obstacles and obstructions in the “right to life” guaranteed by article 21 of the Constitution of India.
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