New Delhi: The Supreme Court on Thursday asked the Reserve Bank of India (RBI) to examine whether its earlier March 27 circular on three-month moratorium on loan repayment between March 1 and May 31 amid coronavirus pandemic was being followed by the banks.
The Reserve Bank of India (RBI) had issued the circular giving liberty to all banks and financial institution to allow a moratorium of three months on payment of installments in respect of all term loans outstanding as on March 1, subject to the borrower making such a request.
It had said that repayment schedule for such loans as also the residual tenor would be shifted across the board by three months after the moratorium period.
The court said that it is not a PIL issue but due to the various issues raised, they will request the RBI to ensure that its order is being implemented in true letter and spirit.
Solicitor General Tushar Mehta told the apex court that it appears that the benefits are not being extended by the bank to the borrowers and there should be proper guidelines for this.
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The court was hearing a PIL filed by Advocate Amit Sahni seeking directions to set aside the March 27 order of RBI which had granted moratorium for 3 months on payment of installments but had said that interests on those amounts would continue.
Sahni had prayed for directions to RBI to waive off the accrued interests for the months of March to May on term loans. He had contended that it should be set aside in a way so that the cumulative EMIs to be paid in June is not waived off but the interest to accrue during moratorium period is deducted.
He says that there should be no interest upon the EMIs (not paid) during the moratorium period.
