Appeal against banks charging interest in lockdown, SC sends notice to Center and RBI

New delhi date. May 26, 2020, Tuesday

The bank has filed an application in the Supreme Court against the interest charged on repaying the loan during the lockdown. The petition has been accepted by the Supreme Court and a notice has been issued to the Center, the Reserve Bank of India. The petition claims how people will pay interest to banks when no earnings are being made during the lockdown.

The application said that the banks have been given a temporary exemption from interest collection, which was earlier till May 31, which has now been extended to August 31. But when this time is over the remaining interest will be charged by the bank, which is not fair.

Senior advocate Rajiv Dutta told the court that the three-month extension was extended to six months. Relief can be obtained if the court makes a decision about this. The bank is offering relief right now, but is also talking about punishment after a while.

Following the hearing, the court sent a notice to the Central Government and the RBI seeking a reply within a week. The case will now be heard next week.

How many concessions are being given by the central government due to lockdown. In addition, the Reserve Bank has also given a waiver. The RBI had allowed non-payment of EMI for the next three months, relieving customers taking term loans in view of the Corona virus and lockdown. Most of the banks then talked of taking the March EMI to June, now the three-month exemption has been extended to August.