The Supreme Court has rebuked the Centre for not taking a stand on allowing moratorium on the charging of interest on loans and the interest on the part during the moratorium period declared amidst the pandemic. The Bench comprising of Justices Ashok Bhushan, R Subhash Reddy and M R Shah went on to comment “it appears as if the Centre was hiding behind the RBI decision on this issue when it had ample powers under the Disaster Management Act to decide whether it could stop banks from charging interest on deferred EMIs and stop interest on interest for the moratorium period.” The Bench has directed the Central Government to file an affidavit within a week, which expires on 31st August, taking a stand and deciding whether interest can be waived or it can stop charging interest on interest accrued during the period of moratorium.

Source: India Legal