SC issues notice to Centre, RBI over plea seeking clarity on loan moratorium
May 15, 2020
New Delhi [India], May 15 : The Supreme Court on Friday issued notices to the Central government and the Reserve Bank of India (RBI) on a plea seeking clarification whether all non-banking finance companies are eligible for loan moratorium or not.
The plea, filed by the Confederation of Real Estate Developers' Associations of India (CREDAI), had sought clarification whether all non-banking finance companies are eligible for loan moratorium or whether banks have the discretion to give the benefit.
The RBI had, in March, issued a circular giving liberty to all banks and financial institutions to allow a moratorium of three months on the payment of instalments with respect to all term loans outstanding as on March 1, subject to borrower's request.
The decision was taken in a bid to address the financial impact of the lockdown.
