Moratorium on loan repayment shouldn't be at the cost of economic recovery

Hopefully, the court will recognise that the legal system should not undermine the financial system

The Supreme Court on Thursday passed interim orders regarding the general lending moratorium, which was part of the pandemic relief package. The court was hearing a case lodged by various trade associations and organisations that claim to represent borrowers and sought an extension of the moratorium and interest payments waiver. The Reserve Bank of India had permitted banks to grant a moratorium on term loans to help soften the economic blow of the outbreak. The moratorium, which was initially for a period of three months till May 31, was later extended to August 31. The uptake of the moratorium was