SC on Loan Moratorium LIVE Updates: Hearing of petitions seeking interest waiver to resume

The Supreme Court (SC) will today continue hearing a batch of petitions seeking interest waiver during the loan moratorium period.

A bench comprising Justices Ashok Bhushan, R Subhash Reddy and MR Shah will resume hearing the petitions on December 9.

The Reserve Bank of India (RBI) had in March announced a moratorium on repayment of term deposits for three months, which was later extended till August 31. The move was intended to provide borrowers relief during the COVID-19 pandemic.

The SC had on September 3 instructed banks not to declare accounts as non-performing assets (NPAs) until further orders.

The Centre in October said that it would waive compound interest on the repayment of loans of up to Rs 2 crore in some categories, a move that would provide relief to individual and MSME borrowers.

The top court had on November 19 directed Centre and RBI to reply to suggestions put forth before the bench. The SC also disposed off petitions in which the petitioners are satisfied with compound interest waiver.

The SC has previously said there is "no merit in charging interest on interest".