SC asks central govt to clarify position on waiver of interest on loan payments for period of nationwide lockdown

New Delhi: The Supreme Court asked the central government to clarify its position on the waiver of interest on outstanding loan payments for the period of the nationwide lockdown. Hearing on the plea seeking interest waiver for a six-month moratorium on loans announced by the Reserve Bank of India (RBI), the apex court observed that the banking regulator’s position will add to the confusion.
 
It said the Centre must clarify its position under the Disaster Management Act as it has got ample powers under it. The court said the government should not think about only business but also about the plight of the people. It added that the stand of the RBI so far is aligned with concerns of the industry and the government seems to be hiding behind the central bank.
 
Representing the centre, Solicitor General Tushar Mehta said that the RBI as a regulator is the one that will take a position. He said the RBI is looking to identify the stressed accounts and then provide relief in terms of lower interest rates.
 
The RBI had on June 4 said lenders will lose Rs 2 lakh crore if interest is waived during the moratorium period. The apex court will next hear the matter on September 1.