InvestorQ : What is the latest legal case about charging of interest on loans that are under moratorium? Do you see any change in that policy?
diksha shah made post

What is the latest legal case about charging of interest on loans that are under moratorium? Do you see any change in that policy?

Answer
user profile image
Priyanka N answered.
4 months ago


This pertains to a petition filed protesting against interest being charged by the banks during the moratorium period. The Supreme Court has, therefore, directed the government of India and the RBI to file their response to the petition challenging charging of interest on loans during the EMI moratorium period. The court has given them a week to file their counter affidavits. The petitioner has opined that despite being a moratorium, interest is being accrued and has to be repaid after the forbearance period. The bone of contention was that it would end up being an added burden instead of a relief in the midst of the COVID-19 pandemic. That would, eventually, defeat the very purpose of the moratorium. This could be a key decision because a waiver would be genuine relief.