The Supreme Court on Thursday virtually extended the loan moratorium period till Septmeber 28, granting relief to borrowers.
The top court extended the interim order in which it had directed the banks not to declare as NPAs accounts that are unable to make repayments.
“Accounts not declared NPA as on August 31 shall not be declared NPA till further orders,†the apex court bench led by Justice Ashok Bhushan had declared in its interim order.
The apex court resumed hearing on September 10. The ruling comes following hearings of several petitions from individuals, realtors and hotels seeking a waiver of interest dues. Senior counsel Kapil Sibal and Rajiv Dutta have requested the Supreme Court to issue directions to the RBI and the central government for waiving off the interest accrued on loan repayments during the moratorium period.
To soften the economic blow caused by the pandemic the banking regulator had mandated banks to grant a moratorium on paying interest dues for a period of three months till May. This was later extended till August 31.
