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Interest will be waived on postponing EMI, know what RBI said in Supreme Court

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The Reserve Bank told the Supreme Court that in the wake of the corona virus epidemic, it is taking all possible measures to provide relief in repayment of loan installment, but it is not a right decision to forcibly waive interest, as it can worsen the financial condition of banks and The borrower of the bank may also have to bear the brunt. Responding to the petition challenging the levy of interest during the moratorium on installment payments, the Reserve Bank said that its regulatory package, a moratorium, is of the nature of withholding, pardoning it or Not to be considered as exempt.

Relief from payment of installment for 6 months

The Reserve Bank has given relief to the borrowers from payment of their bank installment for the first three months and then three months after the economic activity has stopped due to the corona virus lockdown. These installments of the loan can be repaid after 31 August. During this period, no action will be taken on behalf of the bank for not paying the installment.

Also read: After SBI, PNB now shocks customers, reduced interest on savings deposits

In the affidavit submitted to the Supreme Court, the Reserve Bank has said, “Amidst the spread of Corona virus epidemic, it is taking all possible measures to provide relief to all the areas, but in this it is prudent to ask banks to waive interest. The move does not take place as it may pose a risk to the financial affordability of banks and may also harm the interests of depositors.

Banks need to be financially strong

The central bank has said that as far as it has got the right to regulate banks, it is about protecting the interests of depositors in banks and maintaining financial stability, for this it is also necessary that the bank is financially strong and profitable. Are. On May 26, the apex court had asked the Central Government and the Reserve Bank to respond to the petition filed against the recovery of interest during the period of stay. The petition was filed by Gajendra Sharma, a resident of Agra.

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