Loan Moratorium: The next hearing on forgiveness of interest on interest has been postponed till November 18. In the next hearing, the Supreme Court will hear the demand of different industries. These industries say that their loan should also be restructured. At the same time, during the hearing on the loan moratorium today, the Reserve Bank of India (RBI) urged the Supreme Court to remove the interim order, which said that the accounts which have not been declared NPA till August 31 this year, will be given further orders. NPA will not be declared till. At present, people who had paid EMI on time during the Moratorium, cash back is also to come in their account from today.
What did the RBI say
Senior advocate V Giri, appearing for the RBI, while requesting the withdrawal of the interim order, said that we are facing difficulty due to the order banning NPAs. Explain that on September 3, the Supreme Court passed an interim order giving relief to the borrowers facing difficulties due to the Covid-19 epidemic. The borrowers did not pay these EMIs under the loan moratorium scheme brought in due to the epidemic.
The RBI and the Finance Ministry have already told the court in separate affidavits that the difference between compounding interest and simple interest taken from banks, financial and non-banking financial institutions in the accounts of eligible borrowers under installment moratorium scheme 5 Will take necessary steps to submit by November.
Those who take loans up to 2 crores benefit
The Central Government told in the Supreme Court that interest will not be charged on the interest of those taking the Moratorium on loans up to 2 crores. People who have been charged more interest, their money is being returned. At the same time, the counsel for the petitioner expressed satisfaction over the response of the Central Government and RBI, and now requested the Supreme Court to stop hearing on this issue. The petitioner thanked the government and RBI in the Supreme Court.
The court gave time till 2 November
Earlier in the hearing held on October 14, the SC told the government that the interest waiver scheme on interest should be implemented as soon as possible. During this, the Center had sought time till November 15 to issue the circular. The Solicitor General said that the government will issue a circular related to it by 15 November. However, the Supreme Court had ordered the Center to issue the circular by November 2.
Start getting cashback!
Banks have started transferring cashback amount to the account of people who did not miss their EMI and did not avail the loan moratorium scheme from March 1 to August 31, the lockdown period due to Coronavirus. Also, the people who took advantage of the loan moratorium, banks have also started putting the interest amount on the interest charged on the installments deferred during the loan moratorium period on Wednesday in the bank accounts of the borrowers.