New Delhi: The Supreme Court on Monday criticized the banks to impose the fine in the moratorium permitted in the period of COVID. A Bench headed by Justice Ashok Bhushan said applying the fine will be against the aims of the moratorium.
The court said that if the moratorium is announced, it must take steps to fulfill its objectives. This is in contrast to the interest paid on unpaid loan installments during the moratorium. The government should intervene. The court said that not all decisions should be left to the banks.
The apex court was considering a plea seeking direction to the Reserve Bank to waive interest on the moratorium period. Solicitor General Tushar Mehta, appearing on behalf of the central government and RBI, said that the exclusion of interest would affect the financial position of banks. Banks are also offering interest on deposits. Therefore, the interest on the loan cannot be completely waived. The court reminded banks that the matter that is not about the removal of interest but the interest should be paid by the customers during the moratorium. The court directed the reconsideration of the matter. The case will be heard again in the first week of August.
