InvestorQ : What has the Supreme Court ordered on the subject of EMI moratorium?
indhumathi Sayani made post

What has the Supreme Court ordered on the subject of EMI moratorium?

Answer
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diksha shah answered.
4 weeks ago


The Supreme Court has reserved its final judgment on the EMI moratorium case but has ordered that any loan that has been in moratorium on August 31, shall continue to be in status quo till the final order, and shall not be declared as NPAs.

This clarification is important because the RBI had scrapped the EMI moratorium scheme as on August 31, but had replaced it with a special restructuring scheme wherein such loans stressed due to COVID-19 could be restructured up to a period of 2 years.

Apart from the Supreme Court giving clarity, the finance minister Nirmala Sitharaman has given the Indian banks time till September 15 by which time they need to finalize the loan resolution schemes specifically in cases of genuine COVID related stress.

More importantly, Sitharaman has instructed the banks that any borrower opting for loan resolution under the COVID scheme, must not see any impact on CIBIL and this move must be largely credit standing neutral to protect their future borrowing capacity.