Tribune News Service
New Delhi, November 3
The Supreme Court on Tuesday deferred to November 5 the hearing on petitions challenging “interest on interest” charged by banks on EMIs not paid by borrowers who availed of the RBI loan moratorium scheme in view of the COVID-19.
Announced by RBI in March for three months, the loan moratorium is a legal authorisation to debtors to postpone payment of EMIs. It was extended to six months till August 31, 2020. The government said more than 50 per cent of the borrowers didn’t avail of the moratorium.
The top court is seized of PILs seeking direction to the Centre, RBI and banks to waive “interest on interest” for the moratorium period.
The Reserve Bank of India and the Finance Ministry have already told the court that the banks, financial and non-banking financial institutions will credit into the accounts of eligible borrowers by November 5 the difference between compound and simple interest collected on loans of up to Rs 2 crore during the moratorium scheme period.
On Tuesday, Solicitor General Tushar Mehta urged a bench headed by Justice Ashok Bhushan to defer the hearing as he would be busy arguing the Central Vista project case for the Centre before another Bench. The Bench accordingly posted it for hearing on November 5.