Don't declare accounts NPA till further orders, says Supreme Court

A three-judge Bench will hear the case next on Thursday

In a respite to stressed borrowers, the Supreme Court on Thursday directed that accounts not declared non-performing assets (NPAs) as of August 31 should not be classified as such until further orders.

A three-judge Bench headed by Justice Ashok Bhushan was hearing a batch of petitions challenging the levy of interest on loans during the moratorium period. The Bench will hear the case next on September 10. 

The apex court’s directive came while noting the submissions of senior lawyer Harish Salve, who appeared for a banks’ association and said that “no account shall become NPA at least for a period of two