- March 23, 2021
- Posted by: admin
- Category: Daily News
- The Supreme Court (SC) has refused to interfere on government’s economic policy matters and the Reserve Bank of India (RBI)’s loan moratorium policy and declined to extend the six months loan moratorium period.
- The apex court stated that the waiver of complete interest is not possible as granting such relief can have consequences for the economy. Any interest on interest (compound interest) that has been collected shall be adjusted in the next instalment payable, it added.
- On 27 Mar 20, the RBI had announced a moratorium on loan instalments due between 1 Mar 20 and 31 May 20. The moratorium period was later extended by three months till 31 Aug 20.
- The SC also lifted a temporary stay on letting banks declare accounts as non-performing assets (NPAs). In Sep 20, the apex court had ordered that accounts that were not NPAs as on 31 Aug 20 should not be classified as NPAs until further orders.