Supreme Courts grants 3 days to FM, RBI to decide on moratorium period interest

New Delhi, Jun 12, The Supreme Court on Friday asked the Finance Ministry and RBI officials to hold a joint meeting within three days to decide whether interest incurred on EMIs during the moratorium period can be charged by banks or not.
The Centre had put a moratorium for a period till August last keeping in view the burden on consumers or loanee in the light of Covid pandemic and it’s financial implications.
“We direct the Finance Ministry and RBI officials to hold a joint meeting within 3 days to decide whether interest for deferred EMIs during six month period till August 31 can be charged by banks or not,” a bench of the Apex Court, headed by Justice Ashok Bhushan said.
The Court posted the matter for further hearing on Wednesday and said the question is limited to interest on interest and not whether interest is to waived altogether for the six-month EMI moratorium period.
SBI’s counsel, senior advocate Mukul Rohatgi intervened in the proceedings and said that all banks are of the view that interest cannot be waived for six month EMI moratorium period.
The Supreme Court also said that it isn’t considering a complete waiver of interest but only concerned that postponement of interest shouldn’t accrue further interest on it.
The Top Court was hearing a plea challenging the order of the RBI which instituted a moratorium on loan for a period of 3 months, in wake of the COVID-19 pandemic. This moratorium period has been extended by another three months till August last.