www.courtkutchehry.com YOUTUBE VIDEOS- PETITIONS FILED IN THE SUPREME COURT SEEK EXTENSION OF RBI’S LOAN MORATORIUM
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TOPIC
Petitions
filed in the Supreme Court seek extension of RBI’s loan moratorium
On March 27 the RBI
instructed banks to allow moratorium of 3 months for term loans that is till
May 31.
On May 22, the
moratorium period was extended till August 31. A writ petition filed by
Coimbatore Jewellery Manufacturers Association in the hon’ble Supreme Court
seeks extension of RBI’s loan moratorium beyond August 31 for an additional
period of 18 months. The petition submits that "banks have failed to pass
on the benefits of reduced rates of interest to their customers despite
multiple cuts in policy rates (repo, reverse repo and bank rate) made by RBI.”
Despite the fact
that repo rate, reverse repo rate and the bank rate are now the lowest ever,
the rate of interest on loans given out by banks has still not decreased.
The petition also
seeks waiver of interest during the moratorium period because the accrual of
interest defeats the purpose of Emergency Credit Line Guarantee Scheme.
Five knitwear
associations from Ludhiana have also filed a petition in Supreme Court seeking
waiver of interest on loans.
These associations
have a total of about 2000 members and the total value of loans availed by the
sector is around R3,500 crore. They pay around R23 crore as interest on a
monthly basis. They allege that no relief has been provided to the sector and
many units are on the brink of a shutdown.
Presented by The-Brief Sanam Siddiqui
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