The Supreme Court on Tuesday adjourned the hearing of petitions challenging the levy of compound interest on loans during the six-month moratorium.
A Bench led by Justice Ashok Bhushan scheduled the case to Thursday on learning that Solicitor General Tushar Mehta was making his submissions in the Central Vista case before another Bench.
RBI affidavit
The Reserve Bank of India (RBI) has already informed the Supreme Court in an affidavit on Sunday about its advisory to banks and financial companies to fully comply with a government scheme to pay back borrowers compound interest or interest on interest charged on their loans during the six-month moratorium period.
The RBI has said that its circular issued just three days after the Ministry of Finance approved the scheme for ex-gratia payment of the difference in the compound interest and simple interest charged between March 1 and August 31 for eight categories of loans worth up to ₹2 crore by November 5, 2020.
The government scheme means to bring "additional relief” to borrowers affected by the pandemic-induced financial distress. The Union Cabinet had approved the scheme on October 21. The scheme will cover MSME, education, housing, consumer durables, credit card, auto, personal and consumption loans.
