New Delhi: The Supreme Court today virtually extended loan repayment moratorium till September 28 as it continued the interim order directing banks not to declare any loan as NPA (non-performing asset) due to non-payment of instalments during the period.
Also, the apex court today gave the government two more weeks to come up with something concrete- to help borrowers ease their EMI burden using an optional moratorium on repayment of loans allowed during the coronavirus crisis.
‘What is going to happen in two weeks?… We are giving time to the centre, but take a concrete decision,’ a three-judge bench of the top court told the government.
This is the last chance for the Centre and the RBI to come up with a plan to address the issues, the Supreme Court said, refusing to adjourn the case any further.
The Supreme Court was hearing a batch of petitions seeking a waiver of interest on deferred EMIs during the moratorium period, which was introduced by the Reserve Bank of India to ease the financial burden on borrowers in wake of coronavirus pandemic-related restrictions.
The top court asked the government to consider the plea for not charging interest on interest on loans during moratorium and neither downgrading credit rating or asset classification of borrowers.
Rajeev Dutta, senior advocate, appearing for a set of borrowers told the court that compound interest is still being charged in loan cases. ‘Where is the relief? Loans being restructured, that should have been done earlier,’ he said.