Supreme Court asks the government to implement the decision of interest relief on eight categories of debt


The Supreme Court on Friday directed the government to ensure that all steps are taken to implement its decision to provide relief from interest on loans up to Rs 2 crore in eight categories due to the corona virus epidemic. A bench headed by Judge Ashok Bhushan, Justice RS Reddy and Judge MR Shah said that the Kovid-19 epidemic has not only threatened the health of the people but also adversely affected the economic growth of the country. Other countries of the world have also been affected by this.

They will get relief

These categories include micro, small and medium enterprises (MSME), education, housing, sustainable consumers, credit cards, vehicles, personal and consumption loans. “There is no doubt that most businesses including private and public sector were adversely affected by the lockdown imposed under the Disaster Management Act, 2005 for prevention of corona virus epidemic,” the bench said.

Also Read: New RBI Order: Decide on Yourself Online and International Transaction Limit with ATM Card

The court said, “For several months, a large number of industries were not allowed to work.” Only a few industries were allowed to work which came under the necessary and necessary category in the circumstances of that time. However, industry and other business activities are slowly coming back on track after being given relief from lockdown restrictions. The state of the economy is also improving. Although his speed is low.

The apex court said that the six-month gesture given by the Reserve Bank to repay the loan continued from March 3 to August 31. The bench noted the views of Solicitor General Tushar Mehta. He said that the Center has taken steps under the Disaster Management Act, 2005 to address the difficulties and problems in some areas. Have expressed satisfaction on the steps taken from the side…. The bench said, “We dispose of the existing writ petition and instruct the defendant to ensure that he takes all necessary steps to implement the judgment.”

The circular was issued by the Reserve Bank on 27 March. In this, banks and other lending institutions were not allowed to avail loans from customers between March 1, 2020 and May 31, 2020. Later, the extension of not giving loan was extended till 31 August this year. The petition was filed to provide relief from interest-on-interest collection from customers over the monthly installment (EMI) of the loan during the deferment period. Gajendra Sharma of Agra had filed a petition in this regard in the apex court. It urged the RBI to cancel that part of the March 27, 2020 notification that said interest would be charged on the loan amount during the deferment period.


Please enter your comment!
Please enter your name here