HomeNewsIndia NewsSupreme Court seeks RBI decision on moratorium period interest

Supreme Court seeks RBI decision on moratorium period interest

Reserve Bank of India

New Delhi: The Supreme Court has asked the RBI and Finance Ministry to meet to decide on whether interest rates on loans will be paid during the moratorium period. The moratorium was granted to repay the loan for six months following the corona expansion. The apex court’s direction was taken up by the public interest plea filed by Gajendra Sharma, a resident of Agra, seeking to waive interest on loans. The bench comprising Justices Ashok Bhushan, SK Kaul, and MR Shah also observed that the decision should be taken within three days. The plea will be taken up again on Wednesday.

The moratorium was announced at the earliest until May 31 during the financial crisis following the Corona expansion. It was later extended to August 31. The banks had already informed the customers that the interest in the moratorium period would be charged. This will cause an increase in the loan term. On the one hand, the moratorium allows for loans. On the other hand, the Supreme Court had observed on June 4 that it was discriminating against the interest paid during the moratorium.

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