In the Corona era, the RBI provided loan moratorium facility to provide relief to borrowers from EMI. Under this, customers were given relief from payment of EMI till 31 August. But now this facility is over.
The lockdown led to the loss of millions of jobs and lost employment. At the same time companies also cut their employees’ salary. Due to this, many people are still not in a position to repay the loan installment. After the end of the moratorium facility, messages, phone calls and e-mails from banks about payment of EMIs to borrowers have started coming in.
Supreme Court has asked the government to take concrete steps
Realizing the seriousness of the case, the Supreme Court has asked the government to take concrete measures in this regard. This is the reason why the government has constituted a three-member expert committee headed by former CAG Rajiv Maharishi. This committee will submit its report after studying all aspects of the case. These include giving relief to the borrowers from interest on interest.
Expert committee report in a week
Giving information about the formation of this committee, the Finance Ministry had said that this committee will submit its report in a week. The State Bank will give secretarial facilities to this committee. The committee will also hold extensive discussions with banks and other related parties and will submit its report only after that.
How much impact Corona has, committee will take stock
The committee, headed by former CAG Rajeev Maharishi, consists of Dr. Ravindra Dholakia, a former professor at IIM Ahmedabad and a former member of the Reserve Bank’s Monetary Policy Committee, and BR Sriram, former MD of SBI and IDBI. The committee will also assess the impact on the economy and financial stability by giving interest relief to borrowers in the corona period.
How to reduce the impact of financial crisis
The committee will also suggest measures to reduce the financial crisis of different sections of the society. In view of the current situation, the committee may also suggest some other measures. The Finance Ministry release said that a number of concerns have been raised in the ongoing hearing in the Supreme Court in the case of loan moratorium. This petition has been filed by Gajendra Sharma against the Government of India and others.
Petition has been filed for relief in interest
The petition seeks relief in interest on interest and interest during grace period. The release of the Finance Ministry states that in view of these circumstances, the government has constituted an expert committee to study the entire case so that a better decision can be taken in this matter.