new Delhi6 hours ago
- Copy link
The central government had said in the Supreme Court that the term of the loan moratorium could be extended by up to two years.
- Moratorium interest can be in the range of 10 to 20 thousand crores
- The committee was formed on the order of the Supreme Court to consider interest waiver
During the period of the loan moratorium, borrowers waiting to get a waiver of interest on interest can get a shock. The Expert Committee headed by Rajiv Maharshi, constituted by the Central Government, may recommend not to exempt interest on interest. This has been said by quoting sources in the news agency report.
The committee was formed on 10 September
The Central Government formed the Maharishi Committee on 10 September following the order of the Supreme Court. During the Moratorium period, a hearing is going on in the Supreme Court for the relaxation of interest on interest and not to downgrade the credit profile of the borrowers. During the hearing of these petitions, the Supreme Court had ordered a committee to explore the possibility of interest waiver. According to sources connected with this case, the interest amount in the Moratorium can be in the range of 10 to 20 thousand crores.
The committee's recommendation will play an important role in the decision of the Supreme Court
Rajeev Maharishi is the former CAG presiding over this committee. Apart from this, Ravindra H. Dholakia, former Professor of IIM Ahmedabad and B.B., former MD of SBI-IDBI Bank. Shriram is also included in this committee. The recommendation of this committee will play an important role in the decision of the Supreme Court.
Next hearing will be held on September 28
In a previous hearing, the Supreme Court had directed the RBI not to declare defaulters as defaulters until further orders. At the same time, the Central Government was asked to take a concrete decision on this issue. Earlier, the Central Government had stated in the Supreme Court that the term of the loan moratorium could be extended by up to two years. The matter will be next heard on 28 September. A decision may be taken on the same day to extend the term of the loan moratorium and demand for interest rebate on interest.
Loan Moratorium facility ends on 31 August
Considering the economic impact of the corona infection, the RBI granted the moratorium facility for three months in March. The facility was implemented for three months from 1 March to 31 May. Later it was extended by three more months till 31 August by RBI. That is, a total of 6 months moratorium facility was given.
What is moratorium?
When a borrower's financial condition deteriorates due to a natural or other disaster, the repayment is granted for some time by the borrower. The lockdown was also imposed in the country due to the Corona crisis. Due to this, a large number of people had a job crisis. To deal with this crisis, the RBI provided a 6-month moratorium. During this period, borrowers of all types were allowed to pay installments.
RBI has brought one time loan restructuring scheme
The RBI has brought a one-time loan restructuring scheme to overcome the problem of borrowers in the event of the end of the moratorium. According to RBI, apart from corporate houses, Individuals will also get the benefit of this scheme. Consumer loans, education loans, housing loans, loans taken to buy share market-debentures, loans taken to buy consumer durables, credit card loans, auto loans (excluding commercial vehicle loans), gold, jewelery, FDs Restructuring scheme can also be availed on personal loan taken for Gaya loan, personal loan to professionals and any other work.
These options can be found in loan restructuring scheme