Loan moratorium: SC sees 'no merit' in charging interest on unpaid interest

Next hearing in August, Bench instructs centre, RBI to firm up views

The Supreme Court has observed that there’s "no merit” in charging interest on unpaid interest for deferred loan payment instalments during the six-month Covid-19 moratorium period. The top court has, however, asked the Centre and the Reserve Bank of India (RBI) to firm up their views on the issue, while setting the next hearing for the first week of August.

The court also asked Indian Banks Association (IBA) to see if new guidelines can be brought in force for the moratorium. The hearing, on a petition filed against charging of interest on loans during the moratorium period, had representation from