Supreme Court in Interest Waiver Case slammed Reserve Bank of India (RBI) who in an affidavit has said that lenders will lose around Rs 2 lakh Crore if interest is waived during the loan moratorium that has been extended till August 31. SC made a remark that the economic aspect is not higher than the health of the people.
The moratorium was announced to provide some relief to borrowers during COVID Pandemic which has led many people to suffer from financial crisis due to its economic fallout. The moratorium facility did not provide any kind of interest waiver on loans and it only aimed at providing relaxation to borrowers from the financial burden of having to pay the loan and its interest, till August 31. According to SC, permitting a moratorium, but offering no relief through interest, is more detrimental.
Also, the Supreme Court said, “RBI is trying to sensationalise the issue by leaking to the media”. The next hearing on the matter is on June 12.
The Finance Ministry is also assessing the issue of interest waivers which the SC noted.