Supreme Court Serves Notices To Center And RBI

The Reserve Bank of India(RBI) and the Centre served with notices from the Supreme Court after a petition was filed opposing collecting interest on the loans during the moratorium period announced in the wake of the nationwide lockout.

Going into details, the RBI announced that a 3 month moratorium on the loans will be applied for all types of loans be it home loans, term loans, outstanding credit loans, and the option to defer these loans for a period of three months was given to the public.

Even though people can defer their loans, the interest for these loans will continue to accrue which creates an extra burden on the people who already witnessed a pay cut in connection with the lockout.

The Constitutional bench which comprises Justices Ashok Bhushan, Sanjay Kishan Kaul, and M.R. Shah heard the case and served notices to the RBI and Centre and the next hearing of the case was postponed to next week. The bench also sought response from the RBI on the interest collected against the loans.

Gajendra Sharma who hails from Agra moved the Supreme Court in this regard as he can't pay the EMI against Rs 27 lakh he has borrowed from the ICICI Bank as he is left with no income.
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