Policy

Centre to SC: Moratorium on loan repayment can be extended by 2 years

Our Bureau. New Delhi | Updated on September 01, 2020 Published on September 01, 2020

The Centre on Tuesday informed the Supreme Court that moratorium on repayment of loans allowed during the Covid-19 crisis can be extended by up to two years. Meanwhile, the apex court will take up the matter again on Wednesday; it indicated to the parties that there will be no more adjournment.

The RBI had allowed banks and other financial institutions to offer a six-month moratorium to individual and corporate term loan borrowers to tide over the financial crisis precipitated by the pandemic-induced lockdowns.

The government stand came a day after the six-month moratorium period ended on August 31. The Bench, headed by Justice Ashok Bhushan and comprising Justices RS Reddy and MR Shah, was hearing a plea on waiver of interest rate. It had asked the Centre and RBI to review the move to charge interest on EMIs and interest on interest during the moratorium period.

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Published on September 01, 2020
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