Loan moratorium case: Lenders to credit ‘interest on interest’ to borrowers by 5 Nov, Centre tells SC
4 years, 4 months ago

Loan moratorium case: Lenders to credit ‘interest on interest’ to borrowers by 5 Nov, Centre tells SC

Firstpost  

The Ministry of Finance has said that after crediting this amount, the lending institutions would claim reimbursement from the Central government New Delhi: The Centre has informed the Supreme Court that lenders have been directed to credit in the accounts of eligible borrowers by 5 November the difference between compound interest and simple interest collected on loans of up to Rs 2 crore during the RBI’s loan moratorium scheme. In an affidavit filed in the apex court, the government has said that the ministry has issued a scheme as per which lending institutions would credit this amount in the accounts of borrowers for the 6-month loan moratorium period which was announced following the COVID-19 pandemic situation. It said: “The Central government has directed that all lending institutions described in clause 3 thereof shall give effect to the scheme and credit the amount calculated as per the scheme in the respective accounts of borrowers by 5 November, 2020.” The affidavit was filed in the top court which is hearing a batch of pleas which have raised issues, including that of ‘interest on interest’, concerning the loan moratorium period. deferment in payment of instalments as per the circulars dated 27 March, 2020 and 23 May, 2020 issued by RBI.” “After crediting the said amount in the respective accounts of eligible borrowers, the lending institutions would claim reimbursement from the Central government through the nodal agency of State Bank of India as stipulated under the scheme,” it said.

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History of this topic

Period Of Moratorium U/S 101 Of IBC Cannot Be Extended Beyond 180 Days: NCLAT
2 months ago

Period Of Moratorium U/S 101 Of IBC Cannot Be Extended Beyond 180 Days: NCLAT

Live Law  

The NCLAT New Delhi bench of Justice Ashok Bhushan, Mr. Barun Mita and Mr. Arun Baroka has held that the period of moratorium beyond 180 days as provided under section 101 of the IBC cannot be extended. It further held that “when the statutory scheme is clear and unambiguous, there is no role of any interpretive process to find out …

Loan moratorium extension: Everything you should know about impact and process
2 months, 2 weeks ago

Loan moratorium extension: Everything you should know about impact and process

Live Mint  

A loan moratorium is a period during which debtors are protected from having to pay Equated Monthly Instalments and other repayments. The following acts are normally expected when a loan moratorium becomes effective: Application: The borrowers must reach out to their lending institution and apply for a moratorium. Return to regular payments: Once the moratorium expires, borrowers resume the payment …

Borrower Can't Claim Loan Moratorium As A Right Based On RBI's Circular Of March 2020 : Karnataka High Court
3 years, 2 months ago

Borrower Can't Claim Loan Moratorium As A Right Based On RBI's Circular Of March 2020 : Karnataka High Court

Live Law  

The Karnataka High Court recently set aside the directionsissued to Reserve Bank of India by a single judge bench of the High Court directing it to monitor the implementation of Covid-19 package announced on March 27, 20202, by which RBI had allowed Banks to declare a three-month moratorium on all term loans, outstanding as on March 1, 2020. Senior Advocate …

Kerala CM seeks moratorium on loan repayment
3 years, 7 months ago

Kerala CM seeks moratorium on loan repayment

The Hindu  

Chief Minister Pinarayi Vijayan on Thursday sought more cooperation from banks for effectively overcoming the pandemic-induced economic downturn. Mr. Vijayan urged the banks to ensure maximum coverage for farmers, dairy farmers and fishers under the Pradhan Mantri Kisan Samman Nidhi. The Chief Minister encouraged banks to provide liberal assistance to agricultural production groups that are being formed under the State …

Breaking: COVID-Plea In Supreme Court Seeks Relief To Borrowers In Form Of Fresh Loan Moratorium, Temporary Cease On Declaration Of NPA By Banks
3 years, 10 months ago

Breaking: COVID-Plea In Supreme Court Seeks Relief To Borrowers In Form Of Fresh Loan Moratorium, Temporary Cease On Declaration Of NPA By Banks

Live Law  

A plea has been filed before the Supreme Court seeking directions for relief to borrowers in the form of a fresh loan moratorium, extension of time period under the restructuring scheme and temporary cease on the declaration of NPA by the financial banks to bring a relief for the public interest at large in wake of the Pandemic.The plea has …

Bring policy to refund 'interest on interest' charged during moratorium period: RBI asks NBFCs
3 years, 11 months ago

Bring policy to refund 'interest on interest' charged during moratorium period: RBI asks NBFCs

India TV News  

The Reserve Bank of India has directed all banks and NBFCs to immediately put in place a board-approved policy to refund or adjust the 'interest on interest' charged to borrowers during the moratorium period of March 1 to August 31, 2020. In a major relief to big borrowers, the Supreme Court last month ruled that no penal or compound interest …

Supreme Court waives compound, penal interests on loans during moratorium
4 years ago

Supreme Court waives compound, penal interests on loans during moratorium

Hindustan Times  

The Supreme Court on Tuesday ordered banks against charging borrowers any penal interest or compound interest on loans during the moratorium on repayment of loans from March to August 2020 in view of the Covid-19 pandemic. The court refused to extend the moratorium or tinker with the resolution mechanism proposed by Reserve Bank of India to waive compound interest on …

Loan moratorium case | Refund penal interest on EMIs, Supreme Court tells lenders
4 years ago

Loan moratorium case | Refund penal interest on EMIs, Supreme Court tells lenders

The Hindu  

The Supreme Court on Tuesday directed banks and financial institutions to refund compound interest, interest on interest or penal interest collected on EMI for loans during the period of moratorium from March 1 to August 31 last year. The court said the amount accumulated as compound/penal interest or interest on interest during the six-month moratorium on term loan EMIs should …

Supreme Court Bars Charging Compound Interest Or Penal Interest On Any Borrower During Loan Moratorium; Refuses Moratorium Extension
4 years ago

Supreme Court Bars Charging Compound Interest Or Penal Interest On Any Borrower During Loan Moratorium; Refuses Moratorium Extension

Live Law  

The Supreme Court on Tuesday directed that there should be no charging of compound interest, interest on interest or penal interest on the installments which were due during the loan moratorium period from March 1 to August 31 last year on any borrower, irrespective of the loan amount. Terming this policy of the Centre to be "arbitrary and discriminatory", the …

Supreme Court Bars Compound Interest, Penal Interest During Loan Moratorium
4 years ago

Supreme Court Bars Compound Interest, Penal Interest During Loan Moratorium

Live Law  

The Supreme Court on Tuesday directed that there should be no charging of compound interest, interest on interest or penal interest on the installments which were due during the loan moratorium period from March 1 to August 31 last year on any borrower, irrespective of the loan amount. Terming this policy of the Centre to be "arbitrary and discriminatory", the …

Loan Moratorium- Resolution Framework For COVID-Related Stress More Restrictive Than Prudential Norms For Normal Times: SC Told
4 years, 3 months ago

Loan Moratorium- Resolution Framework For COVID-Related Stress More Restrictive Than Prudential Norms For Normal Times: SC Told

Live Law  

Senior Advocate Ravindra Srivastava, for the group, told the bench of Justices Ashok Bhushan, R. Subhash Reddy and M. R. Shah that the banks are "prevailing over" the government and the RBI and "making huge profits". Mr. Srivastava argued that while the Kamath committee had mentioned 26 sectors as having been severely-impacted during the Covid pandemic, the waiver of compound …

Loan Moratorium : Implement Decision To Waive Interest For 8 Specified Loan Categories, Supreme Court Directs Centre
4 years, 3 months ago

Loan Moratorium : Implement Decision To Waive Interest For 8 Specified Loan Categories, Supreme Court Directs Centre

Live Law  

The bench of Justices Ashok Bhushan, R. Subhash Reddy, and M. R. Shah was disposing of a batch of writ petitions which sought for waiver of interest during the loan moratorium period allowed by the Reserve Bank of Indian from March 1 to August 31. The bench noted that in the affidavit dated 23.10.2020 filed on behalf of the Union …

"Situation Demands That Loan Moratorium Be Extended Till 31 March 2021": Plea In Supreme Court Seeks Extension
4 years, 3 months ago

"Situation Demands That Loan Moratorium Be Extended Till 31 March 2021": Plea In Supreme Court Seeks Extension

Live Law  

An amendment application for the prayers in the plea seeking directions to extend the moratorium period till March 31, 2021 has been filed in the Supreme Court.The Supreme Court is currently seized of a batch of plea's and is hearing the issue of extension of loan moratorium and waiver of accruing interest.One of the Petitioner Advocate Vishal Tiwari has sought …

Last Date for Lenders to Credit Interest-on-interest in Borrower Accounts Today; All You Need to Know
4 years, 4 months ago

Last Date for Lenders to Credit Interest-on-interest in Borrower Accounts Today; All You Need to Know

News 18  

Lenders have been directed to credit in the accounts of eligible borrowers the difference between compound interest and simple interest collected on loans of up to Rs 2 crore during the RBI’s loan moratorium scheme by today. The apex court in the due course directed the Centre to provide interest waiver on loans of up to Rs 2 crore under …

[Loan Moratorium And Interest Waiver] Banks Are Advised To Credit Difference Between Compound And Simple Interest To Borrowers: RBI Tells Supreme Court
4 years, 4 months ago

[Loan Moratorium And Interest Waiver] Banks Are Advised To Credit Difference Between Compound And Simple Interest To Borrowers: RBI Tells Supreme Court

Live Law  

In the ongoing issue pertaining to levy of accruing interest on interest and loan moratorium before Supreme Court, Reserve Bank of India informed the Court that banks shall be guided by a Scheme for effectuating ex gratia payments to borrowers towards specified loan amounts.The Additional Affidavit states that the applicable scheme dated October 23 will be "Scheme for grant of …

Loan moratorium: Crop, tractor loans not part of interest-on-interest waiver scheme, Centre clarifies
4 years, 4 months ago

Loan moratorium: Crop, tractor loans not part of interest-on-interest waiver scheme, Centre clarifies

India TV News  

Agriculture and allied activity loans are not eligible for the interest on interest waiver announced by the government last week, the finance ministry has clarified. Issuing additional frequently asked questions on the 'scheme for grant of ex-gratia payment of the difference between compound interest and simple interest', it said credit card dues outstanding as on February 29 would be considered …

Interest Waiver Scheme: Loan Outstanding as of February 29 to be Reference for Ex Gratia Relief
4 years, 4 months ago

Interest Waiver Scheme: Loan Outstanding as of February 29 to be Reference for Ex Gratia Relief

News 18  

The loan outstanding as of February 29 would be the reference amount for calculating the differential interest amount under the ‘scheme for grant of ex gratia payment of difference between compound interest and simple interest’ according to the FAQs released by the Finance Ministry. The Reserve Bank on Tuesday asked all lending institutions, including non-banking financial companies, to ensure that …

Compound conundrum: The Hindu Editorial on interest waiver
4 years, 4 months ago

Compound conundrum: The Hindu Editorial on interest waiver

The Hindu  

The Centre’s scheme to bear the difference between the compound interest and simple interest on retail and MSME loans availed by borrowers whose aggregate outstanding borrowings were less than ₹2 crore between March 1 and August 31, has come not a day too soon. In spelling out the norms for lenders to identify eligible beneficiaries and then ensure that the …

EXPLAINED | Banks To Give Cashback For Interest Waiver To Borrowers Before Diwali: Understand In 10 Points
4 years, 4 months ago

EXPLAINED | Banks To Give Cashback For Interest Waiver To Borrowers Before Diwali: Understand In 10 Points

ABP News  

In a move to ease the financial burden, the Reserve Bank of India directed all the banks and the financial institution of the country to implement the central government’s scheme of interest-on-interest waiver loans for up to Rs. The government has asked the lenders to complete the crediting of ‘interest on interest’ charges in the accounts of borrowers by November …

RBI Asks Lenders to Implement Waiver of Interest on Interest for Loans upto Rs 2cr by Nov 5
4 years, 4 months ago

RBI Asks Lenders to Implement Waiver of Interest on Interest for Loans upto Rs 2cr by Nov 5

News 18  

The Reserve Bank on Tuesday asked all lending institutions, including non-banking financial companies, to ensure that the scheme of waiver of interest on interest for loans up to Rs 2 crore for the six-month moratorium period is implemented by November 5, as decided by the government. Last Friday, the government had announced the scheme for grant of ex-gratia payment of …

Here is What You Will Get if You Paid Your EMIs on Time During Loan Moratorium Period
4 years, 4 months ago

Here is What You Will Get if You Paid Your EMIs on Time During Loan Moratorium Period

News 18  

The Reserve Bank of India had in March, after the outbreak of the novel coronavirus, provided a moratorium on repayment of EMIs and credit card dues for three months. The top court in the due course directed the Centre to implement “as soon as possible” interest waiver on loans of up to Rs 2 crore under the RBI moratorium scheme. …

Loan moratorium | Centre informs Supreme Court it will repay additional interest by November 5
4 years, 5 months ago

Loan moratorium | Centre informs Supreme Court it will repay additional interest by November 5

The Hindu  

The Centre has informed the Supreme Court that the difference in the compound interest and simple interest charged for six months of moratorium period on eight categories of loans worth up to ₹2 crore will be paid back to borrowers by November 5, 2020. "The Central Government has directed that all lending institutions shall give effect to the scheme and …

[Loan Moratorium] Scheme Of Waiver Of 'Interest On Interest' For Eligible Borrowers Will Be Implemented By Nov.5: Centre Tells Supreme Court
4 years, 5 months ago

[Loan Moratorium] Scheme Of Waiver Of 'Interest On Interest' For Eligible Borrowers Will Be Implemented By Nov.5: Centre Tells Supreme Court

Live Law  

The Central Government has filed an affidavit stating that the Ministry of Finance has approved the policy decision for granting various reliefs for Covid pandemic, including a policy decision whereby waiver of interest on interest would be effectuated for eligible borrowers of loans up to Rs. The eligible borrowers under the scheme shall be on MSME loans, Education loan, housing …

Loan interest waiver to be credited by November 5
4 years, 5 months ago

Loan interest waiver to be credited by November 5

The Hindu  

Three weeks after informing the Supreme Court that the Centre would bear the additional compound interest on loans of up to ₹2 crore availed by retail borrowers as well as micro, small and medium enterprises, the government formally communicated the modalities of the scheme to lenders on Friday. Banks and other lenders, including co-operative banks and non-banking finance companies, have …

Govt Waives Interest on Interest for Loans Up to Rs 2 Cr Even for Those Who Didn't Opt for Moratorium
4 years, 5 months ago

Govt Waives Interest on Interest for Loans Up to Rs 2 Cr Even for Those Who Didn't Opt for Moratorium

News 18  

New Delhi: In a relief to borrowers at the onset of the festive season, the government on late Friday night announced waiver of interest on interest for loans up to Rs 2 crore irrespective of whether moratorium was availed or not. The apex court on October 14 directed the Centre to implement "as soon as possible" interest waiver on loans …

Govt waives interest on interest for loans up to ₹2 crore
4 years, 5 months ago

Govt waives interest on interest for loans up to ₹2 crore

The Hindu  

In a relief to borrowers at the onset of the festive season, the government on late Friday night announced waiver of interest on interest for loans up to ₹2 crore irrespective of whether moratorium was availed or not. The Department of Financial Services came out with operational guidelines in the backdrop of Supreme Court’s direction to implement the interest waiver …

Good news for MSME, housing, education loan borrowers ahead of Diwali, govt likely to waive interest on interest
4 years, 5 months ago

Good news for MSME, housing, education loan borrowers ahead of Diwali, govt likely to waive interest on interest

India Today  

Ahead of Diwali, a category of borrowers with up to Rs 2 crore loan for MSME, housing, education and five other categories are likely to get some relief as the government is said to have decided to waive "interest on interest" on loans up to Rs 2 crore during the six-month moratorium period, announced by the Reserve Bank of India …

Loan borrowers’ Deepavali in your hands, Supreme Court tells government
4 years, 5 months ago

Loan borrowers’ Deepavali in your hands, Supreme Court tells government

The Hindu  

The Supreme Court on Wednesday questioned the government’s need to wait a whole month, till November 15, to notify the implementation of a scheme for waiving the compound interest accumulated during the moratorium against loans worth up to ₹2 crore. To this, Justice Shah said the court welcomed the step taken by the government to “take care” of the common …

RBI Accepts Recommendation For Separate Treatment of Aviation, Automotive, Roads Sectors
4 years, 5 months ago

RBI Accepts Recommendation For Separate Treatment of Aviation, Automotive, Roads Sectors

News 18  

Citing Kamath Committee recommendations, the Reserve Bank of India has informed the Supreme Court that it has accepted the recommendation for different treatment for sectors namely aviation, automobile manufacturing, roads and wholesale trading. Citing the September 7 special window notification, the RBI insisted that banks have sufficient flexibility to accommodate the impact of Covid-19 while specifying specific ratios for determining …

Moratorium extension not in borrowers\' interest: RBI tells SC
4 years, 5 months ago

Moratorium extension not in borrowers\' interest: RBI tells SC

Deccan Chronicle  

New Delhi: A loan moratorium exceeding six months might result in vitiating the overall credit discipline, which will have a debilitating impact on the process of credit creation in the economy, the Reserve Bank of India told the Supreme Court on Saturday. In its 17-page “consolidated affidavit” filed ahead of the hearing on Tuesday of the loan moratorium case, the …

Loan moratorium: Compound interest waiver applies to small firms, individuals
4 years, 5 months ago

Loan moratorium: Compound interest waiver applies to small firms, individuals

India Today  

The Union finance ministry is unlikely to extend the benefits of its move to waive the ‘interest on interest’ levied on loans taken by small firms and individuals. In March, the RBI asked lending institutions like banks, non-banking financial companies, microfinance institutions and housing finance companies to allow their borrowers to defer their instalments. The RBI’s recent financial stability report …

Lockdown moratorium | Loans up to ₹2 crore may get relief
4 years, 5 months ago

Lockdown moratorium | Loans up to ₹2 crore may get relief

The Hindu  

The Centre has informed the Supreme Court that it will continue to “hand-hold” small and vulnerable borrowers and waive the compound interest accumulated against their loans during the six-month moratorium period. The government made it clear that “any individual or entity whose loan amount is more than ₹2 crore will not be eligible for waiver of compounding of interest”. The …

SBI loan restructuring: How interest will be calculated during moratorium extension period
4 years, 5 months ago

SBI loan restructuring: How interest will be calculated during moratorium extension period

India Today  

A few days ago, the country’s largest lender State Bank of India came out with a set of rules and regulations for offering an extension on loan repayments to those affected financially by the Covid-19 pandemic. However, there are several key aspects that Covid-affected customers need to know before availing moratorium extension on repayments under SBI’s loan repayment framework. Loan …

Loan moratorium case: Centre, RBI seek more time; next hearing on October 5
4 years, 5 months ago

Loan moratorium case: Centre, RBI seek more time; next hearing on October 5

India Today  

The Supreme Court on Monday said the loan moratorium case would be heard on October 5 as the Centre and Reserve Bank of India need more time to place the decisions taken by them on record. Representing the Centre, Solicitor General Tushar Mehta apologised to the Supreme Court and said the government is at a “very advanced stage” in the …

A balanced approach to waiving interest during moratorium
4 years, 6 months ago

A balanced approach to waiving interest during moratorium

Live Mint  

In March 2020, the Reserve Bank of India allowed a moratorium of three months on payment of instalments of loans and later extended it by three months till 31 August 2020. The scheme was a half-hearted measure to provide relief to borrowers, as the moratorium was too brief, knowing well the gravity and longevity of covid, and it addressed only …

My loan moratorium period is over. Can I ask bank to extend it further?
4 years, 6 months ago

My loan moratorium period is over. Can I ask bank to extend it further?

Live Mint  

I was working with a BPO since July 2019 but I lost my job in July 2020. I took a loan from a housing finance company in September 2017 and I have paid EMIs till March 2020 regularly after which I opted for a moratorium from April 2020 till August 2020. -Shailesh Bathija By Balwant Jain, Chief Editor, ApnaPaisa Realising …

Central Government appoints Expert Committee on waiver of loan interest
4 years, 6 months ago

Central Government appoints Expert Committee on waiver of loan interest

Op India  

The Central government has set up an Expert Committee to make an overall assessment in the matters relating to waiver of interest and waiver of interest on interest on the loans under moratoriumdue to Coronavirus lockdown. Other members of the Committee are Dr. H Dholakia, former Professor at IIM Ahmedabad and former member of the Monetary Policy Committee of the …

Interest During Loan Moratorium: Centre Constitutes Expert Committee
4 years, 6 months ago

Interest During Loan Moratorium: Centre Constitutes Expert Committee

Live Law  

The Ministry of Finance on Thursday constituted an Expert Committee to study the issues related to waiver of interest and interest on interest during loan moratorium. The Centre had today told the Supreme Court today that an expert committee will look into various issues raised in the ongoing hearing in the matter of Gajendra Sharma Vs. UoI and Others The …

Govt Sets Up Expert Panel to Look into Issue of Waiver of Interest During Moratorium
4 years, 6 months ago

Govt Sets Up Expert Panel to Look into Issue of Waiver of Interest During Moratorium

News 18  

The government on Thursday said it has constituted an expert committee under former CAG Rajiv Mehrishi to look into the much-debated issue of waiver of interest on loans during the moratorium period. The announcement came hours after the government informed the Supreme Court that an expert panel has been set up to look into the issue of interest being charged …

In a Relief to Borrowers, Supreme Court Extends Loan Moratorium Scheme till September 28
4 years, 6 months ago

In a Relief to Borrowers, Supreme Court Extends Loan Moratorium Scheme till September 28

News 18  

Continuing its interim order, the Supreme Court on Thursday extended loan repayment moratorium till September 28 that directed banks not to declare any loan as NPA due to non-payment of installments during the period. The apex court had earlier asked the Centre and the Reserve Bank of India to review the move to charge interest on EMIs during the moratorium …

[Loan Moratorium & Interest Waiver] "Highest Level Expert Committee Convening Meetings & Will Take Holistic Decision In Two Weeks": Centre Tells SC, Interim Order To Continue [Read Order]
4 years, 6 months ago

[Loan Moratorium & Interest Waiver] "Highest Level Expert Committee Convening Meetings & Will Take Holistic Decision In Two Weeks": Centre Tells SC, Interim Order To Continue [Read Order]

Live Law  

The Centre informed Supreme Court on Thursday that an Expert Committee at the highest level had been constituted in order to take a decision on the issue of moratorium extension, interest during moratorium, interest on interest and other related issues. Solicitor General Tushar Mehta sought two weeks time in order to place on record a comprehensive affidavit in this regard …

Loan moratorium: RBI likely to announce one-time loan restructuring guidelines soon
4 years, 6 months ago

Loan moratorium: RBI likely to announce one-time loan restructuring guidelines soon

Live Mint  

The Reserve Bank of India is likely to announce the financial parameters of its proposed loan restructuring scheme soon. In his interview to CNBC Awaaz, RBI Governor Shaktikanta Das said that banks can extend the loan moratorium by 3, 6 or even 12 months under the one-time restructuring. To mitigate the hardships faced by the borrowers during coronavirus pandemic, the …

Supreme Court Adjourns Hearing in Loan Moratorium Case Till September 10
4 years, 6 months ago

Supreme Court Adjourns Hearing in Loan Moratorium Case Till September 10

News 18  

The Supreme Court on Thursday provided some relief to stressed borrowers who are facing hardship due to impact of COVID-19 pandemic. The bench said that accounts which were not declared as non-performing assets till August 31 this year, shall not be declared NPA till further orders, and adjourned the next hearing in the loan moratorium matter until next week Thursday, …

Relief for borrowers in moratorium case
4 years, 6 months ago

Relief for borrowers in moratorium case

The Hindu  

The Supreme Court on Thursday directed banks that loan accounts on the clear till the expiry of the moratorium on August 31 should not be declared as non-performing assets till further orders. A Bench led by Justice Ashok Bhushan spelt relief for borrowers struggling to gain their feet amid a pandemic with its one-liner that “accounts which were not declared …

Banks Can’t Declare Loan Accounts as NPAs Till Further Orders: SC
4 years, 6 months ago

Banks Can’t Declare Loan Accounts as NPAs Till Further Orders: SC

The Quint  

The Solicitor General, representing the Finance Ministry and the RBI, submitted before the bench that an expert committee on resolutions is to decide sector-wise relief to ease stress caused by the pandemic. "Expert committee does not come in way of individual borrowers," said Mehta, who also cited the 6 August RBI circular which deals with stressed accounts and provides for …

Protect Accounts Which Were Not Declared NPA Till August 31, Says Supreme Court
4 years, 6 months ago

Protect Accounts Which Were Not Declared NPA Till August 31, Says Supreme Court

News 18  

The Supreme Court Thursday directed that accounts, which were not declared as non-performing asset till August 31 this year, shall not be declared NPA till further orders. In view of the above, the accounts which were not declared NPA till August 31, 2020 shall not be declared NPA till further orders, said the bench, also comprising Justices R S Reddy …

Loan moratorium: Banks shouldn’t declare accounts as NPAs till further order, says SC
4 years, 6 months ago

Loan moratorium: Banks shouldn’t declare accounts as NPAs till further order, says SC

Live Mint  

The Supreme Court of India on Thursday passed an interim order saying that the accounts not declared as non-performing asset as on 31 August shall not be declared as NPAs till further notice. The apex court on Thursday heard a batch of petitions seeking interest waiver on loan moratorium granted by Reserve Bank of India. While arguing whether banks should …

Loan moratorium over: You can still avail extension of two more years
4 years, 6 months ago

Loan moratorium over: You can still avail extension of two more years

Live Mint  

In view of the pandemic of Covid-19, the RBI had, vide a Circular dated 27 th March 2020, permitted the lenders to allow a moratorium for three months of EMI, falling due between 1 st March 2020 and 31 st May 2020, for various categories of loans. But the things became clear when the RBI circular of 6th August 2020 …

Loan moratorium | Interest on interest “worse than taking a pound of flesh”
4 years, 6 months ago

Loan moratorium | Interest on interest “worse than taking a pound of flesh”

The Hindu  

Circulars issued by the Reserve Bank of India on August 6 and hailed by the government in the Supreme Court came under intense criticism from individual borrowers and commercial sectors across the spectrum who called it “old wine in a new bottle”. The circulars allow individual banks discretion to resolve COVID-19 -related stress and customise relief to individual borrowers facing …

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