MORATORIUM BORROWERS INTEREST DECREASED | COURT DAYS NO INTEREST ON EMIS | 2020

 MORATORIUM BORROWERS INTEREST DECREASED 

The apex court has given two weeks to the central government, RBI, and banks on a petition seeking non-collection of interest on EMIs stalled during the moratorium due to corona. Several petitions have been filed in the Supreme Court over the statement made by banks that they will charge interest on EMIs that were stagnant at the time of imposition of a moratorium on coronavirus.

The apex court has directed the central government, banks, and the RBI to come up with a specific policy within two weeks so as not to burden the borrowers. The three-judge bench of the apex court refused to adjourn the case once again and directed the court to file an affidavit with a solution within two weeks so as not to burden the debtors.

 The central government has told the court that it is in high-level consultations with banks to provide shelter to the borrowers.

Banks, however, argue that waiving interest on EMIs during the moratorium period will weaken the banking system. The Reserve Bank of India (RBI) announced a three-month moratorium on loan repayments in March this year in the wake of the Coronavirus and then extended it to August 31.