Supreme Court to give verdict on loan moratorium in a short time

New Delhi, 23/3 (AO Bureau): In the midst of the Corona crisis, on the instructions of the Reserve Bank of India (RBI), all the banks had given temporary relief to the borrowers and allowed them not to pay EMI (EMI) for 6 months. After this, when this facility ended, petitions were filed in the Supreme Court against the interest on interest being charged by the banks for the term of the Loan Moratorium. Now the Supreme Court will give its verdict on the loan moratorium case today i.e. on 23 March 2021. A bench of Justices Ashok Bhushan, R Subhash Reddy and MR Shah will pronounce the verdict.

Those who did not repay the loan installment during the 6 months due to exemption from paying EMI given during the Corona crisis, were not put into default. However, banks were charging interest on these 6 months of interest. Explain that the RBI first implemented the loan moratorium on 27 March 2020. Under this, relief was paid from paying EMI from March 1, 2020, to May 31, 2020. However, later it was increased to 31 August 2020 by the RBI. The RBI filed an affidavit in the Supreme Court in September 2020, stating that extending the loan moratorium for more than 6 months would adversely affect the economy.

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