Moratorium on loans: SC gives 3 days to FinMin, RBI to decide on interest

On March 27, the RBI had announced a three-month moratorium on all term loans in view of the Covid-induced lockdown and related disruptions.

The Supreme Court on Friday asked the finance ministry to hold discussions with the Reserve Bank of India (RBI) and other stakeholders over charging interest on loans under moratorium, and file an affidavit in three days.

Setting June 17 as the next date of hearing, a Bench of Justices Ashok Bhushan, S K Kaul and M R Shah said it will limit the petition to banks charging interest on unpaid interest and not waiver.

Solicitor General Tushar Mehta, appearing for the Centre, said he had sought a meeting with the RBI. The Bench said if the RBI reply “goes much beyond the