The circular of RBI has been challenged in the Supreme Court for three months’ deferment regarding the payment of EMI of the loan amid the lockdown imposed to prevent the outbreak of Corona. In the petition filed by Advocate Amit Sahni, this circular has been described as shocking. The petition states that interest will continue to be charged during the moratorium period and in this way it does not make sense to pay additional interest. Sahni has urged the Supreme Court to direct the central government and RBI to provide that no bank or financial institution will take any interest from the borrower for any period of moratorium.
For your information, let us tell you that the central bank issued a circular at the end of last month. In this, banks and financial institutions were instructed to give three months’ deferment to creditors for payment of EMI of all term loans.
In its statement, the central bank had said that the schedule of payment of such loan will be extended for three months. However, interest will be charged on the total outstanding balance during the moratorium period. The same circular of RBI has been challenged in the Supreme Court. Sahni in his petition has also directed the court and the RBI to consider extending the moratorium period. The petitioner has said that this will give the people who lost employment due to Kovid-19 little time to pay the loan even after lockdown.
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