Decision in 2-3 Days Over Interest on Deferred Instalments by Banks, Centre Informs SC
4 years, 3 months ago

Decision in 2-3 Days Over Interest on Deferred Instalments by Banks, Centre Informs SC

News 18  

The Centre informed the Supreme Court on Monday that a decision is likely in 2-3 days over charging of interest by banks on instalments which were deferred during the moratorium period in view of the COVID-19 pandemic. The top court asked the Centre to bring the decision on record and circulate the affidavit to the parties in a batch of pleas challenging interest on deferred instalments. On Sept 10, the top court had extended its interim order that no account is to be declared NPA till further orders after the Centre said an expert panel has been set up to look into the issue of interest being charged by banks on instalments deferred during the moratorium period due to COVID-19 pandemic. The government at highest level is considering all the issues raised before the court in the petitions and a decision would be taken within two weeks, the Centre informed the apex court.

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History of this topic

Loan moratorium case | Refund penal interest on EMIs, Supreme Court tells lenders
3 years, 9 months 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
3 years, 9 months 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
3 years, 9 months 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 …

Breaking: Supreme Court To Pronounce Judgment On Pleas Seeking Loan Moratorium Extension Tomorrow
3 years, 9 months ago

Breaking: Supreme Court To Pronounce Judgment On Pleas Seeking Loan Moratorium Extension Tomorrow

Live Law  

The Supreme Court will pronounce its judgment tomorrow on a batch of petitions which seek the extension of the 6 month loan moratorium period granted by the Reserve Bank of India.The Court had reserved the Judgment on December 17 last year after hearing petitioners, Centre, RBI and intervenors. The Supreme Court will pronounce its judgment tomorrow on a batch of …

Here is What You Will Get if You Paid Your EMIs on Time During Loan Moratorium Period
4 years, 2 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. …

Opinion | Pandemic pandemonium & policies - measured by moratorium and Moody’s
4 years, 2 months ago

Opinion | Pandemic pandemonium & policies - measured by moratorium and Moody’s

Live Mint  

Moratorium: A temporary stopping of an activity, especially by official agreement Interest moratorium: Temporary pause of interest payments due Pandemonium: A state of great noise and confusion Policies: A plan of action agreed or chosen by a government Pandemic: A disease that spreads over a whole country or the whole world The topic of interest calculation and its levy, which …

Moratorium extension not in borrowers\' interest: RBI tells SC
4 years, 2 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 …

Banks tread with care on recast, as SC verdict on waiver looms large
4 years, 3 months ago

Banks tread with care on recast, as SC verdict on waiver looms large

Live Mint  

Stung by a sour past on asset quality, India’s lenders are taking all kinds of precautions before they go easy on borrowers by restructuring loans. The higher interest rate charged is also to offset the cost the bank incurs due to provisioning. “For individual loans, immediate P&L impact for SBI will be limited to the provisioning towards restructured individual accounts,” …

A balanced approach to waiving interest during moratorium
4 years, 3 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 …

Interest During Loan Moratorium: Centre Constitutes Expert Committee
4 years, 4 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, 4 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, 4 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, 4 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 …

Relief for borrowers in moratorium case
4 years, 4 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 …

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

Interest waiver on EMIs during moratorium against basic canon of finance: Centre
4 years, 4 months ago

Interest waiver on EMIs during moratorium against basic canon of finance: Centre

Live Mint  

Waiver of interest on deferred EMIs during the moratorium period would be against “the basic canons of finance” and unfair to those who repaid loans as per schedule, the Centre told the Supreme Court on Tuesday. The government said any “post facto” change in the terms of the RBI circulars with regard to non-charging of interest during the moratorium period …

"Loan Moratorium Period Capable Of Being Extended By 2 Years": Centre Tells SC
4 years, 4 months ago

"Loan Moratorium Period Capable Of Being Extended By 2 Years": Centre Tells SC

Live Law  

The Central Government told the Supreme Court on Tuesday that the moratorium period is extendable by two years. @RBI #loans #moratorium #banks #interestwaiver pic.twitter.com/o6P3EoImJh — Live Law September 1, 2020 Earlier, the Supreme Court had said there was "no merit in charging interest on interest" for deferred loan payment instalments during the moratorium period announced in wake of the COVID-19 …

Loan moratorium scheme | Supreme Court hits out at Centre
4 years, 4 months ago

Loan moratorium scheme | Supreme Court hits out at Centre

The Hindu  

The Supreme Court on Wednesday criticised the Centre for “hiding behind the Reserve Bank of India” without making its stand clear on the loan moratorium scheme introduced during the COVID-19 pandemic. Noting that the issue had been pending indecisively for some months now, the court advised the government against adopting a blinkered vision, focussing only on matters of business of …

'Don't Hide Behind RBI, Take Own Stand': Supreme Court Raps Centre on Loan Moratorium Scheme
4 years, 4 months ago

'Don't Hide Behind RBI, Take Own Stand': Supreme Court Raps Centre on Loan Moratorium Scheme

News 18  

The Supreme Court on Wednesday said the Central government is “hiding behind the RBI” and dithering from its own stand on whether there should be some relief in the form of waiver to those who have availed loans from banks and other financial institutions. The court’s adverse comments against the Government came after Solicitor General Tushar Mehta referred to the …

No benefit from RBI’s loan moratorium scheme, says Supreme Court
4 years, 6 months ago

No benefit from RBI’s loan moratorium scheme, says Supreme Court

The Hindu  

The Supreme Court on Wednesday said there were few takers for the Reserve Bank of India’s loan moratorium scheme during the lockdown because people know there was hardly any benefit arising out of it. Appearing before a Bench led by Justice Ashok Bhushan, Solicitor-General Tushar Mehta, who had met Finance Ministry and RBI officials, explained that the moratorium during a …

SC defers case seeking clarification on eligibility of NBFC for loan moratorium
4 years, 7 months ago

SC defers case seeking clarification on eligibility of NBFC for loan moratorium

Live Mint  

The Supreme Court on Tuesday deferred hearing the plea seeking clarification on the eligibility of the Non Banking Financial Company for loan moratorium scheme announced by RBI in March which granted three-month loan moratorium from paying EMIs and other loans amidst the nationwide lockdown due to covid-19. The central bank had on 22 May extended moratorium on term loans till …

SC Raises Concerns Over RBI Allowing Levy Of Interest During Moratorium; Adjourns Hearing Till June 12
4 years, 7 months ago

SC Raises Concerns Over RBI Allowing Levy Of Interest During Moratorium; Adjourns Hearing Till June 12

Live Law  

The Supreme Court on Thursday made oral observations raising concerns over the Reserve Bank of India allowing levy of interest during the moratorium period allowed for loan repayments.A bench comprising Justices Ashok Bhushan, S K Kaul and M R Shah was hearing petitions filed Gajendra Sharma and few others challenging the RBI Circulars of March 27 and May 22 to …

'Levy Of Interest During Moratorium Takes Away Benefit' : Plea In SC Challenges May 22 Circular Of RBI [Read Petition]
4 years, 7 months ago

'Levy Of Interest During Moratorium Takes Away Benefit' : Plea In SC Challenges May 22 Circular Of RBI [Read Petition]

Live Law  

The Maharashtra Chambers of Housing Industry – Thane Unit has approached the Supreme Court of India vide a Writ Petition under Article 32 of the Constitution of India challenging the decision of the Reserve Bank of India to allow levy interest during the 6-month moratorium period announced in the wake of COVID-19 lockdown.The MCHI – Thane Unit is an association …

Loan moratorium: Supreme Court directive to Centre, RBI
4 years, 7 months ago

Loan moratorium: Supreme Court directive to Centre, RBI

The Hindu  

The Supreme Court on Tuesday directed the Central government and the Reserve Bank of India to file their formal response to a petition challenging the charging interest rate on loans even during the three-month moratorium declared amid the COVID-19 pandemic and national lockdown. The petitioner, Gajendra Sharma, said though there was a moratorium on loans, there is also accrual of …

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