Supreme Court responds about the extension of Loan MoratoriumMarch 23, 2021 13:19
(Image source from: Businesstoday.in)
Supreme Court responds about the extension of Loan Moratorium:- With the arrival of the coronavirus pandemic, the entire globe is under huge financial stress. The Indian banks introduced a loan moratorium to reduce the stress for all those who acquire loans from the banks. About the extension of the loan moratorium beyond August 2020, the arguments took place in Supreme Court. The apex court said that it is not possible to waive off the complete interest for the entire lockdown period. The Supreme Court told that it is not possible for the complete waiver as the lenders have to pay the interests to the shareholders, account holders and the depositors. The Supreme Court also refused to interfere with the RBI's Loan Moratorium Policy with the Indian government.
The top court also declined to increase the period of relief of the loan moratorium under this measure. The court said that it is the government that will decide about what is best for the national economy and about the relief packages for the people during this tough time. The top court announced that there would be no compound interest charged on the deferred interest that falls during the loan moratorium period. The Supreme Court also announced that it is not possible to extend the loan moratorium period beyond August 31st last year. A three-judge bench headed by Justice MR Shah made the announcement in the Supreme Court. They said that they are not experts in economic, financial and commercial sectors to take key decisions and announced that the top court would stay away from interfering in the key decisions that should be made by the Indian government.