SC protects loans not declared NPAs till Aug 31 from such action for now

The Supreme Court Bench said if a loan account had not been declared bad as of the end of August, it should not be classified as NPA till the moratorium case was disposed of

The Supreme Court on Thursday said those accounts that had not been declared non-performing assets (NPAs) as on August 31 should not be declared bad loans until the case was disposed of, the Live Law reported. The decision was taken by a Bench of Justices Ashok Bhushan, R Subhash Reddy, and M R Shah, who were hearing pleas seeking an extension of the moratorium on loan repayments in view of the Covid-19 pandemic. The Court will continue its hearing in the case on September 10. 

The decision came two days after the Centre and the Reserve Bank of India (RBI)