NEW DELHI: The Center and RBI reported Tuesday to Supreme Court that the moratorium period on loan repayment amid the Covid-19 pandemic is “extendable” for two years.
Attorney General (SG) Tushar Mehta, appearing for the Center and the Reserve Bank of India (RBI), told a bank headed by Judge Ashok Bhushan that various measures have been taken for stressed sectors and that the economy has contracted 23 percent due to the pandemic. “We are in the process of identifying the sectors in difficulty to vary the benefits according to the impact (Covid-19) of the impact they have received,” said the SG.
The high court said it will hear and decide on Wednesday on the pile of petitions calling for an interest waiver or interest waiver on interest on suspended EMIs (monthly equivalent installments) during the moratorium period.
The plan, which was implemented to help borrowers overcome the Covid-19 crisis, ended on Aug. 31. Borrowers were allowed to defer loan payments for a period of six months.
The SC 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.
Attorney General (SG) Tushar Mehta, appearing for the Center and the Reserve Bank of India (RBI), told a bank headed by Judge Ashok Bhushan that various measures have been taken for stressed sectors and that the economy has contracted 23 percent due to the pandemic. “We are in the process of identifying the sectors in difficulty to vary the benefits according to the impact (Covid-19) of the impact they have received,” said the SG.
The high court said it will hear and decide on Wednesday on the pile of petitions calling for an interest waiver or interest waiver on interest on suspended EMIs (monthly equivalent installments) during the moratorium period.
The plan, which was implemented to help borrowers overcome the Covid-19 crisis, ended on Aug. 31. Borrowers were allowed to defer loan payments for a period of six months.
The SC 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.
The high court had said there was “no merit in charging interest on interest” for deferred loan installments during the announced moratorium period in the wake of the Covid pandemic.
In video: Moratorium on loans extendable for 2 years according to the impact of Covid-19: Center to SC
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