The Reserve Bank of India on 5th November 2020 told the Supreme Court bench headed by Justice Ashok Bhushan that it was facing difficulty due to the order banning declaring of NPAs, and requested to lift the interim order. The Supreme Court had passed the interim order on 3rd September 2020 to provide relief to stressed borrowers who were facing hardships due to the impact of the COVID-19 pandemic.
The Supreme Court Bench was hearing a batch of pleas relating to charging of interest on interest by banks on EMIs from 1st March 2020 to 31st August 2020, which were not paid by the borrowers who availed of the loan moratorium scheme floated by the RBI in view of the pandemic. The RBI and the Finance Ministry have already filed separate additional affidavits in the Apex Court stating that the banks, financial and non-banking financial institutions will credit the difference amount between compound and simple interest collected on loans of up to Rs. 2 crores during the moratorium scheme period into the accounts of eligible borrowers by 5th November 2020.
On 14th October 2020, the Apex Court observed that the Centre should implement "as soon as possible" the interest waiver on loans of up to Rs 2 crore under the RBI's moratorium scheme.
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