The Supreme Court on Thursday will hear petitions to pursue the loan moratorium granted by the Reserve Bank of India (RBI) during the lockdown and waive interest. The debate on the matter was not completed on Wednesday. Loan moratorium means the facility to postpone the loan installment for a few months. Given the Corona situation and lockdown, the facility was given for three months earlier in March. This was later extended for three more months.
The Central Government told the Supreme Court on Wednesday that if the interest of the loan concession period is waived, it will prove to be harmful. This will spoil the health of banks. Banks will weaken, which are an important part of the economy.
Solicitor General Tushar Mehta, appearing for the Center before a three-member bench headed by Justice Ashok Bhushan, said that strong banks are required to revive the economy and rebuild distressed assets. He also said that there are different types of banks, also NBFCs.
The effect of Kovid-19 is different on different regions. He said these things at a time when the real estate, power sector, tourism, MSME and other industries said that income has been declining since March, it is improper and unreasonable to charge interest for the moratorium (concession) period. is.
Mehta told the bench that we are not here with adverse arguments. You are here We are all here All are to solve the crisis. He said there are some options available to revive the economy. First, to forgive the interest. The second is broader.
The first step under this would be to reduce the burden of repayment of loans. The next priority is to get the various sectors back on track so that the economy can keep going. Reorganize assets and then make the banking sector work smoothly.
He said that there are different banks to deal with different types of loans and lenders. Most economies run not on large corporations, but on small businesses.
Debtors on independent cannot be punished for restructuring bank loans: Peeth
A three-member bench said that banks are free to restructure loans but those who take loans cannot be punished. During the Kovid-19 pandemic loans cannot penalize honest borrowers by levying interest in EMI moratorium scheme.
Shopping Center Association of India counsel Ranjit Kumar said that unlike Pharma, FMCG and IT sectors, shopping centers and malls have not performed well during the bandh. The petitioners have appealed to the Supreme Court that interest should not be charged for the moratorium period.
Moratorium facility ends on 31 August
If the moratorium does not increase, the loan installment will have to be given from September. If the
Supreme Court does not extend the term of the moratorium, then all the people taking advantage of this facility will have to pay their loan installment from September.