SC issues notice to RBI & Centre in plea seeking interest waiver during moratorium

Supreme Court has issued a notice to the RBI and centre over a petition which challenged the charging of interest on loans after 3 months of the moratorium period.

New Delhi: The Supreme Court bench led by Justice Ashok Bhushan issued a notice to the Reserve Bank of India (RBI) and centre over a petition which challenged the charging of interest on loans after 3 months of the moratorium period granted by the RBI which has now been extended till 31st August.

The PIL was filed by Gajendra Sharma who alleged that the move of charging interest for the moratorium period later is unconstitutional as people are facing financial crisis and the incomes have shrunk during the lockdown.

The RBI had ordered moratorium on the payment of EMIs but not on the interests on loans, till 31st May which is now extended till 31st August.

SG Tushar Mehta informed the court that the RBI is yet to respond on the matter after which the bench gave the RBI one week of time to reply on the petition.