BREAKING: Supreme Court reserves verdict on pleas on loan moratorium case

The Supreme Court on Thursday reserved verdict on pleas relating to extension of loan moratorium period. The pleas pertained to charging of interest on interest by banks on EMIs which have not been paid by borrowers after availing the loan moratorium scheme of RBI during March 1 to August 31 in view of the COVID-19 pandemic.

The RBI had in March announced a moratorium on repayment of term deposits for three months, which was later extended till August 31. The move was intended to provide borrowers relief during the COVID-19 pandemic and expected to give them more time to clear payments of EMIs amid the economic fallout of the lockdown, without being classified as NPAs.