RBI cannot act as agent of banks, demand increased in Moratorium, SC for six months

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Senior advocate Rajiv Dutta, appearing for the loan holders, said that we are not talking about default in loans. Moratorium on EMI means giving relief in case of cash flow crisis. How can it be called deficit from banks?




The Supreme Court could not decide on Wednesday to demand relief on interest during the loan moratorium period. The top court has now decided to continue the hearing on Thursday. The case will start hearing again at 2 pm on Thursday. Advocating the petitioners during the hearing, the advocate said that charging interest on interest is like a defaulting debtor. He said that the Moratorium was a decision to give relief in view of the cash flow crisis, but it has done a double whammy. Not only this, Advocate Rajiv Dutta questioned the RBI and said that the role of RBI is a financial regulator, it cannot act as an agent of banks, as it is doing. It seems that the banks are hiding behind the RBI and are also making profits in this crisis of Corona.

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Senior advocate Rajiv Dutta, appearing for the loan holders, said that we are not talking about default in loans. Moratorium on EMI means giving relief in case of cash flow crisis. How can it be called deficit from banks? He said that people are going through a crisis in the Corona era and the scheme of Moratorium is proving to be a double whammy for them. Dutta said that charging interest on interest is prima facie wrong and banks cannot recover it.



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