SC asked RBI to find out a way to provide a waiver from interest. Solicitor general Tushar Mehta informs about the concern of Government. Banks also have to pay interest on their deposits then how they will be able to give a waiver. The court also mentioned about the NPA’s. It is also observed that Pandemic is not a normal situation at all. A waive off from the interest during this period shall be provided. RBI issued a circular for a moratorium for a period of three months. It was extended to 6 months. But interest during this period was leviable. The only payment was deferred.SC asked RBI to waive off interest.
But the government is not in a position of giving it. A variety of loans are covered in lending. A blanket waiver of interest may be harmful to revenue.
Still, we can hope for a bailout plan very soon. The next date of hearing is fixed in the first week of August 2020.
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