The Supreme Court directed the Reserve Bank of India (RBI) to ensure that its circular on the three-month moratorium on loan repayment between March 1 and May 31 is implemented in its letter and spirit as it appears that banks are not extending the benefit to borrowers, writes The Economic Times.
The apex court told solicitor general Tushar Mehta, appearing for the Centre, that it appears that the benefit given by the RBI is not been extended to borrowers. The plea was made that since the March 27 circular was not being implemented in letter and spirit, it should be set aside.
The bench said that there should be some guidelines so that the benefit is extended to the borrowers by the banks. The bench refused to entertain three other PILs related to the March 27 circular after finding that none of the petitioner has taken a loan. and is aggrieved party.
On March 27, the RBI had issued a slew of measures to check financial impact of the nationwide lockdown and had issued a circular giving liberty to all banks and financial institutions to allow a moratorium of three months on payment of instalments in respect of all term loans outstanding as on March 1, subject to the borrower making such a request.
It had said that repayment schedule for such loans as also the residual tenor would be shifted across the board by three months after the moratorium period.
Interest shall continue to accrue on the outstanding portion of the term loans during the moratorium period, the RBI had said.