Supreme Court Asks RBI To Ensure Implementation Of Loan Moratorium Circular
The Supreme Court directed the nation’s central bank to ensure that its circular on loan moratorium is being implemented.
The bench, headed by Justice NV Ramanna, disposed off the case, saying “in view of the above, we direct the Reserve Bank of India to ensure implementation of the circular dated 27.03.2020 in its letter and spirit”.
The RBI in March had issued the circular allowing banks to grant a moratorium on all loans that became due between March and May 2020 due the disruptions caused by the coronavirus pandemic.
The top court was hearing public interest litigations filed on the implementation of the circular by banks as well as sought to challenge the levy of interest on loans during this period.
While the bench said there were reports that borrowers are not fully getting the benefits intended to be passed to them by the banks, the petitioners didn’t have any loans and their plea was not fit to be heard as a PIL.