COVID Loan Moratorium -Assessment For Interest Waivers

Finance Ministry is assessing the issue of interest waivers on COVID Loan Moratorium – Permitting a moratorium, but offering no relief through interest, is more detrimental, the apex court told the banking regulator RBI. The moratorium was initially granted on all type of loans whose installments were due between March 1 and May 31. Later the moratorium was extended till 31st  August. The moratorium was granted to provide borrowers relief during the COVID-19 outbreak.

Moneycontrol quoted that the central bank had in an affidavit said lenders will lose around Rs 2 lakh crore if interest is waived during the loan moratorium, which has been extended till August 31. The economic aspect is not higher than health of the people, the Supreme Court told the Reserve Bank of India (RBI) in the interest waiver case.

The Supreme Court noted that the Finance Ministry is assessing the issue of interest waivers on COVID Loan Moratorium. The top court will next hear the matter on June 12.

Also Read – COVID-19 Personal Loans By Banks – Check Your Eligibility Criteria