NEW DELHI: The Supreme Court on Wednesday came down heavily on the Centre for not taking a stand on giving moratorium on charging interest on loan as well as interest on interest during the same period declared during pandemic.
“You cannot be interested only in business and not about sufferings of people,” the top court said.
The court further stated that “it appears that the Centre is hiding behind the RBI (Reserve Bank of India) decision on this issue when it had ample powers under Disaster Management Act to decide whether it could stop banks from charging interest on deferred EMIs (equated monthly instalmets) and stop interest on interest for moratorium period.”
The RBI had in March announced a moratorium on repayment of term deposits for three months, which was later extended till August 31.
“You cannot be interested only in business and not about sufferings of people,” the top court said.
The court further stated that “it appears that the Centre is hiding behind the RBI (Reserve Bank of India) decision on this issue when it had ample powers under Disaster Management Act to decide whether it could stop banks from charging interest on deferred EMIs (equated monthly instalmets) and stop interest on interest for moratorium period.”
The RBI had in March announced a moratorium on repayment of term deposits for three months, which was later extended till August 31.
