Relief For Centre As Supreme Court Refuses To Intervene In Loan Relief Policy

The loan relief was meant for personal, housing, education, auto and consumer durables loans, loans to micro, small and medium enterprises (MSME), besides loans to micro, small and medium enterprises (MSME)

The Supreme Court on Tuesday refused to intervene in the loan relief policy on the grounds that it does not have expertise on issues of financial and economic health. The Supreme Court bench of Justices Ashok Bhushan, R Subhash Reddy and MR Shah was hearing a batch of petitions on whether to waive interest payments on coronavirus support loans in a move that could give relief to millions of people. In its affidavit, the RBI had pointed out that any waiver of interest on interest would entail significant economic costs on banks and this, in turn, would have huge implications for depositors and broader financial stability. The central bank had earlier instructed banks and other financial institutions to credit the difference in compound interest and simple interest on repayments of eligible loans up to Rs 2 crore due between March and August, by November 5 last year. The loan relief was meant for personal, housing, education, auto and consumer durables loans, loans to micro, small and medium enterprises (MSME), besides loans to micro, small and medium enterprises (MSME) and credit card dues, subject to applicable conditions.