Loan Moratorium

The Supreme Court on Tuesday said it would hear a batch of petitions tomorrow which have raised issues concerning the six-month loan moratorium period announced due to the COVID-19 pandemic. The pleas came up for hearing before a bench, comprising Justices Ashok Bhushan, R S Reddy and M R Shah, which said it would hear the matter on Wednesday.

The Supreme Court on Monday asked the Centre and the Reserve Bank of India (RBI) to place on record the K V Kamath committee recommendation on debt restructuring due to COVID-19 related stress on various sectors as also the notifications and circulars issued by them so far on the issue of loan moratorium.

The Supreme Court on Tuesday deferred to November 5 hearing on the pleas seeking an extension of the loan moratorium and waiver of interest on term loans during the six-month moratorium period.

The Centre and RBI on Tuesday informed the Supreme Court that the moratorium period on repayment of loans amid the Covid-19 pandemic is “extendable” by two years. Solicitor General Tushar Mehta appearing for the Centre and the RBI, told the SC bench that several steps have been taken for stressed sectors and the economy has contracted by 23 per cent due to the pandemic.

Last week, the Reserve Bank of India (RBI) had asked all lending institutions, including non-banking financial companies, to ensure that the scheme of waiver of interest on interest for loans up to Rs 2 crore for the six-month moratorium period is implemented by November 5.

The Supreme Court on Wednesday denied the Central government's request seeking one month's time to implement the interest waiver on loans of up to Rs 2 crore and observed that it is not fair on the government's part to delay the implementation of its decision.

The Supreme Court on Friday said the courts are not experts in financial matters and disposed of a writ petition seeking fresh loan moratorium relief, extension of time period under the restructuring scheme and temporary cease on the declaration of NPA by banks amid the Covid-19 second wave.

The Supreme Court on Monday adjourned to October 5 hearing on two public interest litigations (PILs) seeking an extension of the moratorium period and waive off interest on the repayment of the loan amount in view the Covid-19 pandemic.

Not content with the Centre’s decision to waive interest on interest on instalments for loans up to Rs 2 crore payable during the six-month moratorium period, the Supreme Court (SC) on Monday appeared to stretch judicial scrutiny further to include the “no go” zone of fiscal policy, asking the Centre to place on record its decisions on relief to big borrowers.

With no signs of revival in the industrial sector and production and sales bordering around 30% of the usual size, industrialists have urged that the loan moratorium ending next month be extended.

Borrowers who could not avail the six-month moratorium benefit because of the Rs 2 crore loan ceiling may get compound interest relief of Rs 7,000-7,500 crore following the Supreme Court's verdict on Tuesday, ratings agency Icra said.

When business evaporated at Gajendra Sharma's eyeglass shop a couple of miles from the Taj Mahal during India's strict COVID-19 lockdown, he was relieved to hear about a pandemic debt moratorium that would give him breathing room on his home loan.

The Reserve Bank of India (RBI) has appealed to the country's top court to let banks classify loans as non-performing, saying a ban imposed to help borrowers in the Covid-19 pandemic could greatly harm the nation's financial system.

The govt’s decision to waive “interest on interest” during the March-August loan moratorium period will benefit all individuals with loans up to Rs 2 crore but if you have a home loan, especially one that was availed several years ago, your savings will not be much. However, if you have outstanding credit card loans or dues, the benefits will be quite substantial.

The Centre informed the Supreme Court on Tuesday that if it were to consider waiving interest on all the loans and advances to all categories of borrowers for the six-month moratorium period announced by RBI (Reserve Bank of India) in view of Covid-19 pandemic, then the amount foregone would be more than Rs 6 lakh crore.

The Reserve Bank of India (RBI) on Thursday announced a loan restructuring window for corporates following bankers and industry demand. The restructuring will be allowed as per the prudential framework issued on June 7, 2019, RBI governor Shaktikanta Das said.

The Retailers Association of India, which includes top retailers like Future Group, Walmart India, Shoppers Stop, Aditya Birla Fashion, has asked the RBI governor--Shaktikanta Das-- to consider increasing the 3-month loan moratorium to 9-months as they expect consumer demand to take much longer to stabilise while they are also sitting with large inventory owing to the 21-day national lockdown.

Economic aspect is not higher than the health of the people, the Supreme Court told the Reserve Bank of India (RBI) on interest waiver during loan moratorium.

Finance minister P Chidambaram's move to exempt interest for education loans taken prior to March 31, 2009, has created confusion, say those in the banking and education business.

With the 2023-24 budget set to be presented on Monday, the state has revealed that it took a loan of 32,652 crore to implement the flagship Misson Bhagiratha scheme, which has received accolades from the Centre.