SC Defers Hearing On Interest On Interest Waiver Case To Nov 18

On the multiple pleas concerning interest on interest being charged by lenders on EMIs that were not paid by borrowers who availed RBI's moratorium scheme allowed due to the Covid 19 pandemic, the Supreme Court today adjourned the hearing to November 18.

Earlier the apex court was to hear the matter on November 3 which was posted to today due to non-availability of SC Tushar Mehta.

During the hearing the RBI requested the SC to withdraw the stay on classification of loans as NPAs or non-performing assets. Counsels representing the MSME sector also pleaded for additional relief measures. It is worth noting that the SC in interim decision has disallowed classification of any account as NPA.

Earlier RBI to SC said that loan moratorium over six months will be vitiating overall credit discipline.

In mid-October Justice Ashok Bhushan bench asked the centre to implement the decision of waiving compound interest implication for small borrowers for the moratorium period by November 2. Further paying heed to the apex court's call, the RBI notified the centre's interest on interest waiver scheme for the moratorium period and asked all of the banks to take required measures within the stipulated timeline.

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