SC slams RBI on interest on loans in moratorium: Economic aspect not higher than health of the people
The RBI had in an affidavit said lenders will lose around Rs 2 lakh crore if interest is waived during the loan moratorium.
June 04, 2020 / 01:13 PM IST
The economic aspect is not higher than health of the people, the Supreme Court told the Reserve Bank of India (RBI) in the interest waiver case.
The central bank had in an affidavit said lenders will lose around Rs 2 lakh crore if interest is waived during the loan moratorium, which has been extended till August 31.
"RBI trying to sensationalize the issue by leaking to the media," the Supreme Court said, as quoted by CNBC-TV18.
Permitting a moratorium, but offering no relief through interest, is more detrimental, the apex court told the banking regulator.
The moratorium was initially granted on loans whose instalments are due between March 1 and May 31, which was later extended till the end of August.
The moratorium is intended to provide borrowers some relief during the COVID-19 outbreak.
The Supreme Court noted that the Finance Ministry is assessing the issue of interest waivers.
The top court will next hear the matter on June 12.