NEW DELHI: The Supreme Court asked the Reserve Bank of India and the finance ministry to clarify whether it is mandatory for banks to grant moratorium on instalments of term loans following a circular by the central bank on Mar 27.
The apex court also asked the central bank and the ministry to clarify if banks must charge interest on the outstanding portion of the loans. The circular, which is part of the RBI's Covid-19 Regulatory Package, allows banks to grant the moratorium as well as charge the interest.
The apex court took up a petition by Confederation of Real Estate Developers' Association, Haryana, which had sought the clarification saying many lenders had not granted the moratorium to companies despite the circular from the central bank. The rescheduling of payments is applicable to all commercial banks, and cooperative banks, and non banking financial institutions.
