Loan EMI Moratorium- Relief for the common man, the government will soon decide the exemption on EMI

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The Central Government can make its statement in 2-3 days to end the interest charged and to increase the period of moratorium according to different areas.

Hearing has been postponed again in the Supreme Court in the case of Lone Moratorium. The central government has asked for more time for a decision on this, after which the Supreme Court has postponed the hearing till 5 October. The Center has sought 3 days more time from the court on Monday. The government needs some more time to keep the details in front of the court. In this case, the central government can file an affidavit in the court till October 1. Explain that the RBI started the loan moratorium for 3 months in March, which was later extended to 31 August for another 3 months. But during the last hearing, the Supreme Court has extended it till 28 September and now till 5 October.

The panel was formedIn the government’s affidavit, the Center can make its point regarding the elimination of interest on interest and extending the period of moratorium according to different areas. The government can also take a decision on the recommendations of the Maharishi Committee. The Center had said that the existing rules of the Reserve Bank allow the duration of the Moratorium to be extended for two years. The Center has constituted an expert panel under former Comptroller and Auditor General (CAG) Rajeev Maharishi to look into the issue of interest being taken by banks on deferred installments during the postponement period due to COVID-19 epidemic.

Prohibition on declaring default account as NPA-Since, the term of the loan moratorium is over. In such a situation, people have started getting messages, phone calls and e-mail to pay EMI from banks. Due to this, people are afraid of declaring their bank loan account as Non Performing Asset (NPA). The Supreme Court has said that until the government does not give concrete plans, till then till August 31, the interim order will not continue to declare loan defaulters as NPAs.

In this case, it has been said on behalf of the petitioner in the court that if the government has given this facility in view of the lockdown then why the customers have to pay interest on interest. The customers who postponed EMI, now their EMI is increasing. Compounding interest is being taken from them. Then what is the use of this facility?

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