Following the outbreak of the COVID-19 pandemic Reserve bank of India and the Supreme court have given many decisions to suppress the economic failures and financial stress. Among these there came a decision on June 11, 2021, ” Supreme court of India to pass an order of fresh loan moratorium and said the issues raised in the petition are in the realm of policy decisions.”
What is the PIL about?
The Supreme court says that it does not come under the expertise of judges and is a matter of the banking system. The moratorium on all loans announced by RBI last year on home, auto, and agricultural loans. The decision is to help the customers overcome the financial difficulties.
The decision bench was headed by Justice Ashok Bhushan. The petitioner has pleaded with the supreme court for a new loans moratorium, Time extension, and temporary cease on the declaration of NPA by banks.
One-time loan restructuring scheme
The one-time loan restructuring plan is for individuals and small businesses considering the financial conditions. People will be able to recast their loans again. Their NPA also will not downgrade.
Why this decision?
Supreme court judge, M R Shah who is a part of the bench tells the media briefly about the decision. He says,” what is an economic policy or what will be the financial package, the center. Rbi will decide this after a discussion in detail.”
“From various steps taken by center and Rbi, we can’t say that center hasn’t taken steps in the backdrop of covid-19. Therefore the petitioners will not be eligible for a waiver of interest, extend moratorium period, or sector-specific relief,” he added.
The Supreme court has dismissed a batch of plea regarding these issues earlier also.
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