Online Export Import Data Search

Recent Searches: No Recent Searches
Complete Training Video : Click Here

SC directs RBI to ensure its moratorium circular is implemented in its letter and spirit

Date: 01-05-2020
Subject: SC directs RBI to ensure its moratorium circular is implemented in its letter and spirit
The Supreme Court on Thursday directed the Reserve Bank of India (RBI) to ensure that its circular on three-month moratorium on loan repayment between March 1 and May 31 is implemented in its letter and spirit as it appears that the banks are not extending the benefit to the borrowers.

The apex court told Solicitor General Tushar Mehta, appearing for Centre, that it appears that the benefit given by the RBI is not been extended to the borrowers.

The plea was made that since the March 27 circular was not being implemented in its letter and spirit, it should be set aside.

However, a bench of Justices N V Ramana, Sanjay Kishan Kaul and B R Gavai, which took up as many four PILs related to RBI circular through video conferencing, said since the petitioners are not aggrieved parties therefore it is not interfering with the circular.

During the hearing, the bench asked petitioner's advocate Saju Jacob that how much loan did the petitioner had taken as none of the aggrieved person have come forward.

The counsel replied that he is not involved in any loan and is only a PIL petitioner.

The bench said that there has to be an aggrieved party as it is a policy decision and meant for those, who have taken a loan.

Mehta replied that the circular applies to the borrowers and urged the court to direct for consideration of PIL as representation to the RBI.

The bench said that there should be some guidelines so that the benefit is extended to the borrowers by the banks.

The bench refused to entertain three other PILs related to the March 27 circular after finding that none of the petitioner has taken loan and is aggrieved party.

On March 27, RBI had issued slew of measures to check financial impact of the nationwide lockdown and had issued a circular giving liberty to all banks and financial institution to allow a moratorium of three months on payment of instalments in respect of all term loans outstanding as on March 1, subject to the borrower making such a request.

It had said that repayment schedule for such loans as also the residual tenor would be shifted across the board by three months after the moratorium period.

Interest shall continue to accrue on the outstanding portion of the term loans during the moratorium period, the RBI had said.

Source:- moneycontrol.com

Infodrive India Pvt Ltd

Delhi :
  F-19, Pocket F, Okhla Phase-I
      Okhla Industrial Area

      New Delhi- 110020
   011 - 40703001

Kolkata :
  5th Floor Stesalit Towers,
      E-2-3, EP & GP Block,

      Sector-V, Salt Lake City,
      Kolkata-700 091
   033 - 71177191

INFODRIVE INDIA Copyright © 1996-2020 InfodriveIndia. All Rights Reserved.
Please read our Terms of Use and Privacy Policy before you use.

Get Sample Now

Which service(s) are you interested in?
 Export Data
 Import Data
 Exim Help