Loan EMI Moratorium- The common man can get relief, the government will soon decide the exemption on EMI
The Central Government can make its statement in 2-3 days to end the interest charged and to increase the period of moratorium according to different areas.
new Delhi. Hearing has been postponed again in the Supreme Court in the case of Lone Moratorium. The central government has asked for more time for a decision on this, after which the Supreme Court has postponed the hearing till 5 October. The Center has sought 3 days more time from the court on Monday. The government needs some more time to keep the details in front of the court. In this case, the central government can file an affidavit in the court till October 1. Explain that the RBI started the loan moratorium for 3 months in March, which was later extended to 31 August for another 3 months. But during the last hearing, the Supreme Court has extended it till 28 September and now till 5 October.
The panel was formedIn the government’s affidavit, the Center can make its point regarding the elimination of interest on interest and extending the period of moratorium according to different areas. The government can also take a decision on the recommendations of the Maharishi Committee. The Center had said that the existing rules of the Reserve Bank allow the duration of the Moratorium to be extended for two years. The Center has constituted an expert panel under former Comptroller and Auditor General (CAG) Rajeev Maharishi to look into the issue of interest being taken by banks on deferred installments during the postponement period due to COVID-19 epidemic.
On September 10, while pleading on behalf of the government and the RBI, Tushar Mehta said in the court that he cannot discount the interest, but will reduce the pressure of payment. Mehta had said that the banking sector is the backbone of the economy and no decision can be taken to weaken the economy.
However, during this time he also believed that all the people who have kept the problem are right. It is important to consider the situation of every sector, but the banking sector will also have to be taken care of. Tushar Mehta said that the purpose of the Moratorium was not that the interest would be forgiven.
Prohibition on declaring default account as NPA-Since, the term of the loan moratorium is over. In such a situation, people have started getting messages, phone calls and e-mail to pay EMI from banks. Due to this, people are afraid of declaring their bank loan account as Non Performing Asset (NPA). The Supreme Court has said that until the government does not give concrete plans, till then till August 31, the interim order will not continue to declare loan defaulters as NPAs.
is Dikkt-In fact, due to the lockdown, the RBI had given loan moratorium facility to those customers, who were unable to repay the EMI on time due to declining income. This facility remained from March to August. This was an immediate relief, as it was the only option to avoid EMI. But the shock to the customers was that during the days for which they have taken the moratorium, during that time the bank will take interest on the interest generated on the EMI.
In this case, it has been said on behalf of the petitioner in the court that if the government has given this facility in view of the lockdown then why the customers have to pay interest on interest. The customers who postponed EMI, now their EMI is increasing. Compounding interest is being taken from them. Then what is the use of this facility?
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