[BREAKING NEWS]$type=ticker$cols=4

SC asks RBI, FinMin to reply on interest relief

SHARE:


The Supreme Court on Thursday asked the Reserve Bank of India (RBI) and the Union finance ministry to file a joint response on whether interest on loans can be waived for the six-month moratorium period.

In March, the central bank had allowed a three-month moratorium on payment of all term loans due between March 1 and May 31. On May 22, the moratorium was extended till August 31.

On May 26, the apex court had sought RBI’s response after petitioner Gajendra Sharma sought interest waiver during the moratorium period. In an affidavit filed on Wednesday, RBI said it does not consider it prudent or appropriate to forcefully waive interest, which would risk the financial viability of the banks it is mandated to regulate, and put the interests of the depositors in jeopardy.

The RBI affidavit detailed the amount of losses that would have to be absorbed by the financial sector in case the moratorium was declared as an interest-free period. “The weighted average lending rate for banks as on December 3, 2019 was 10.40%, and the outstanding of term loans was ₹59,52,192 crore. Assuming that the moratorium was granted to only 65% of the above outstanding, the monthly interest that will be foregone by the banks in case moratorium period has to be declared interest-free will be approximately ₹33,500 crore,” RBI said.

A three-judge bench comprising Justices Ashok Bhushan, MR Shah and SK.Kaul heard the submission through videoconferencing.

Justice Bhushan said there were two main issues; the first was whether interest should be charged during the moratorium period or not; the second issue was whether interest should be charged on the accrued interest.

“There are two issues in this: No interest during moratorium period, and no interest on interest,” said Bhushan.

While referring to RBI’s reply, senior advocate Rajiv Dutta, appearing for the petitioner, said: “The cat is out of bag…They’re saying profitability of bank prime. So, only the banks should earn and the rest of the country goes down under?”

“We know, economic aspect should not be higher than the health of people,” said the bench.
Enter your email to get our daily newsletter in your inbox

Name

Business,4,Entertainment,4,Lifestyle,5,National,4,Sports,5,Tech,4,World,4,
ltr
item
Fatafat Samachar- Breaking News, Latest News, Business, Bollywood, Technology, Sports, Lifestyle: SC asks RBI, FinMin to reply on interest relief
SC asks RBI, FinMin to reply on interest relief
https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiJdUk0AAx5pD8lv251BAP5oetrP-6vVoGXXSZSsczgFlCJv6gZ4t1JVdTDv-kFF-WgFekS6jw20SJRVVFy9x78FqtrfGyifFwmIXX7x41pANaFvRojVVSAXWZbZO-4DPx1GoCUlqpz-arA/s640/Screenshot+2020-06-05+at+12.06.36+PM.png
https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiJdUk0AAx5pD8lv251BAP5oetrP-6vVoGXXSZSsczgFlCJv6gZ4t1JVdTDv-kFF-WgFekS6jw20SJRVVFy9x78FqtrfGyifFwmIXX7x41pANaFvRojVVSAXWZbZO-4DPx1GoCUlqpz-arA/s72-c/Screenshot+2020-06-05+at+12.06.36+PM.png
Fatafat Samachar- Breaking News, Latest News, Business, Bollywood, Technology, Sports, Lifestyle
https://www.fatafatsamachaar.com/2020/06/sc-asks-rbi-finmin-to-reply-on-interest.html
https://www.fatafatsamachaar.com/
https://www.fatafatsamachaar.com/
https://www.fatafatsamachaar.com/2020/06/sc-asks-rbi-finmin-to-reply-on-interest.html
true
8590698128132794642
UTF-8
Loaded All Posts Not found any posts VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS PREMIUM CONTENT IS LOCKED STEP 1: Share to a social network STEP 2: Click the link on your social network Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy Table of Content