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Loan Moratorem: RBI Files Fresh Affidavit On Loan Moratorium Period In Supreme Court
By: Tupaki Desk | 10 Oct 2020 8:29 AM GMT
The loan moratorium case which went through many twists and turns took another shocking turn with the Reserve Bank of India(RBI) filing a fresh affidavit at the apex court.
It is believed that, in the affidavit, RBI maintained that it's not possible to extend the loan moratorium period and it cannot add anything to the financial relief packages that were announced already.
The country's banking regulator cannot extend the moratorium period beyond six months period stating that moratorium extension might lead to the vitiation of the credit discipline and this might leave a debilitating impact on the economy.
On the other hand, the Centre told the Supreme Court that, providing more relief to various sectors that were hit by the Coronavirus crisis, Additional relief, besides the waiver of compound interests for the loans under Rs 2 crore might detriment the economy, media reports claimed.
The centre filed an affidavit after the apex court on Monday, said: The affidavit filed by the government on waiving compound interests in loans up to Rs 2 crore was not satisfactory and a new affidavit should be filed.
While directing the center, the apex court said the concerns of the real estate and electricity producers should be taken into considerations while filing the new affidavits.
Given the impact left by the lockdown on the Indian economy, the Reserve Bank of India(RBI) on March 27 announced that moratorium of three months on payment of all installments.
It is believed that, in the affidavit, RBI maintained that it's not possible to extend the loan moratorium period and it cannot add anything to the financial relief packages that were announced already.
The country's banking regulator cannot extend the moratorium period beyond six months period stating that moratorium extension might lead to the vitiation of the credit discipline and this might leave a debilitating impact on the economy.
On the other hand, the Centre told the Supreme Court that, providing more relief to various sectors that were hit by the Coronavirus crisis, Additional relief, besides the waiver of compound interests for the loans under Rs 2 crore might detriment the economy, media reports claimed.
The centre filed an affidavit after the apex court on Monday, said: The affidavit filed by the government on waiving compound interests in loans up to Rs 2 crore was not satisfactory and a new affidavit should be filed.
While directing the center, the apex court said the concerns of the real estate and electricity producers should be taken into considerations while filing the new affidavits.
Given the impact left by the lockdown on the Indian economy, the Reserve Bank of India(RBI) on March 27 announced that moratorium of three months on payment of all installments.
