SC asks govt, RBI to respond to plea on interest on loan during moratorium

Interest shall continue to accrue on the outstanding portion of the term loans during the moratorium period, the RBI had said.

The Supreme Court Tuesday asked the Centre and the RBI to respond to a plea challenging levy of interest on loans during the moratorium period, which has now been extended by another three months till August 31 due to the coronavirus pandemic.

A bench headed by Justice Ashok Bhushan, hearing the matter through video-conferencing, issued notices to the Centre and the Reserve Bank of India asking them to file their replies within a week.

The counsel appearing for the petitioner informed the bench, also comprising Justices S K Kaul and M R Shah, that earlier the moratorium period was for