RBI circular on loan moratorium challenged in Supreme Court

The catch in this relief was that interest would continue to accrue during the three-month moratorium, which would additionally have to be borne by a customer if he/she chose to avail of the benefit.

The petition filed in the top court seeks that no interest be charged during the moratorium as citizens were facing “extreme hardship, whereby business and work have come to a halt and the entire market has crashed,” and that there was no sense in paying additional interest along with the regular EMIs.

The PIL further says that during such difficult times, the state must not look to enrich itself, and has also sought SC directions to both the RBI and the government to consider even extending the moratorium period for loan repayment for longer. ​