The trio of the Supreme Court, headed by Justice Ashok Bhushan, has begun hearing petitions filed by various industry bodies. The Supreme Court is hearing a variety of petitions urging banks to stop lending interest on creditors. The hearing of the case took place on November 18. In the wake of the Kovid-19 pandemic, the Reserve Bank has provided the facility to stop payment of loan installments. Banks have charged monthly installment loans (EMI) from customers receiving this facility, which has been challenged in the Supreme Court.
The Reserve Bank of India and the Ministry of Finance have already filed separate affidavits to the Supreme Court, stating that banks, financial institutions and non-bank financial institutions (NBFCs) have until November 5 the equivalent of compounding and simple interest differentials in eligible creditors’ accounts. Banks put this account in the customer’s account and the customers were informed via SMS.
Debt moratorium case: Supreme Court hearing on ‘Interest on Interest’ case today
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