Loan Moratorium Can Be Extended For 2 Years

September 01, 2020 15:24
Loan Moratorium Can Be Extended For 2 Years

The Supreme Court last week said that the Centre and RBI are busy making business even during the coronavirus pandemic times. The moratorium from the Indian banks will end up today and the Indian government informed the Supreme Court that the moratorium period can be extended up to two years further as per the update from the Reserve Bank of India. This is sure a relief for those who are struggling in a deep financial crisis. The moratorium period was initially planned for three months and was extended for three more months for all the existing individual and corporate loans.

Solicitor General Tushar Mehta who was representing the Centre said that the Centre will discuss the matter with the central bank and banker's association so that they could get the right solution to waive of the interest during the moratorium period. The Indian GDP is down by 23 percent which says that the Indian economy is badly stressed. There should be a detailed discussion that should happen about the interest in the interest. The Supreme Court posted the matter for Wednesday as there is no affidavit by the Centre about their stand. Last week, the Supreme Court asked the Centre about their stand on waiving the interests on the loan repayments during this moratorium period.

The bench headed by Justice Ashok Bhushan has been hearing the pleas that are filed by Gajender Sharma and lawyer Vishal Tiwari about the extension of moratorium during this coronavirus pandemic time.

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