The hearing of pleas relating to charging of interest on interest granted by the banks on the EMIs not paid by the borrowers who utilized the RBI loan moratorium scheme amidst the COVID-19 scare and lockdown is postponed to November 18.
The said pleas constitute of the interest on interest on the EMIs not paid, availed through the loan moratorium scheme of the RBI during March 1st to August 31.
The Finance Ministry and the Reserve Bank of India have filed their distinct and separate affidavits in the Supreme Court stating that by November 5th the Banks, financial and non-financial institutions will credit the difference between the compound interest and simple interest into the accounts of eligible borrowers. This is related to the interest to be collected on loans of up to INR 2 Crores during the loan moratorium scheme.
The Reserve Bank of India had granted a loan moratorium scheme keeping in view the Covid pandemic. The said pleas have sought complete waiver of the interest for the entire period of moratorium scheme.
Bench of Hon’ble Justice Ashok Bhushan adjourned the hearing to November 18 due to unavailability of the Solicitor General, Tushar Mehta.