As a result of the lockdown due to the ongoing Coronavirus pandemic, the Central Government and the RBI had imposed a loan moratorium period of 6 months, which would lessen a great amount of burden for all the loan payers, who are experiencing a cut down in their salaries.
The 6 month period came to an end on August 31st, and the Supreme Court had earlier asked the RBI to review the status of the period and get back to it.
The RBI and the Central Government have now gotten back to the SC with the review. Solicitor General (SG) Tushar Mehta, who spoke on behalf of the Central Government and RBI, told a bench headed by Justice Ashok Bhushan that the moratorium period is extendable for 2 more years.
He said that the economy had contracted by 23% during this pandemic, and that it would be difficult for anyone to pay their EMIs during this period.
He also said that they are in the process of identifying the distressed sectors to vary benefits as per the (Covid-19) impact of hit they have taken.
The Supreme Court is set to hear a bunch of petitions filed for the waving of interests on the EMIs that have been suspended so far.
The SC also said that there was no point in charging interest on interest, considering the moratorium period announced, and the economical condition.