Supreme Court postpones hearing to November 18
The Supreme Court postponed Tuesday to November 18 the hearing on a batch of pleas relating to the collection of interest by banks on IMEs that have not been paid by borrowers who have resorted to the moratorium regime on RBI loans due to the COVID-19 pandemic, Reuters reported.
The Reserve Bank of India and the Ministry of Finance have already filed separate additional affidavits in the Supreme Court, indicating that banks, financial institutions and non-banks will credit the accounts of eligible borrowers by November 5 the difference between compound and simple interest collected. on loans up to ??2 crore during the period of the moratorium regime.
The pleas concerned the collection of interest on interest by banks on IMEs that were not paid by borrowers after taking advantage of the RBI’s loan moratorium program from March 1 to August 31.
Previously, the RBI had filed the affidavit stating that it had asked all banks, financial and non-bank institutions to take the “necessary steps” to credit to the accounts of eligible borrowers the difference between compound and simple interest charged on loans up to ??2 crore during the moratorium regime.
Earlier, the central government told the Supreme Court that lenders were asked to credit the accounts of eligible borrowers with the difference between compound and simple interest charged on loans of up to ??2 crore during the RBI loan moratorium program by November 5.
The government had said that the ministry had released a program whereby lending institutions would credit this amount into borrowers’ accounts for the 6-month loan moratorium period that was announced following the COVID pandemic situation. -19.
On October 14, the Supreme Court observed that the Center should implement “as soon as possible” the exemption from interest on loans up to a limit of ??2 crore under the RBI moratorium program and declared that ordinary man’s Diwali was in the hands of the government.
The RBI had published on March 27 the circular which allowed credit institutions to grant a moratorium on the payment of maturities of term loans maturing between March 1, 2020 and May 31, 2020, due to the pandemic. Later, the moratorium was extended until August 31 of this year.
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