[Interest On Loan Moratorium Hearing- Day-2] Live- Updates From Supreme Court

SG: The Expert Committee on 6th September will come with sector specific guidelines to ameliorate the problems. 

SG: Banks can adopt their own measures to alleviate their particular class of borrowers.

SG: Banks can do today - nothing which prevents the banks from taking alleviating measures.

SG: Modalities & intricacies will have to be dealt with by the banks. This will be sector-wise. Expert committee does not come in way of individual borrowers. 

SG: Banks fully empowered to resolve covid19 related stress and customise concessions for borrowers with respect of altering rate of interest as well, tenure of loan, with or without moratorium for two years & even for waiving penal charges

Justice Bhushan: Their argument is that all sectors were affected differently.

Has mind been applied with regard to the issue of mitigating the issues for those sectors which have suffered? 

Justice Bhushan: All measures on record already by RBI however, Union has not taken any measures under Disaster Management Act.

We will not examine under 32 whether measures suitable. Question is did the Union operate within the legal framework of DMA? Did the NDMA?

SG: None of the Circulars are under challenge. So not on their validity.

I am only pointing out that we took these measures as they were more financially prudent. 

SG: Important to segregate defaulter from those affected by Covid and thus defaulted

SG: This means if one does not pay as on August 31, the account in default does not become an NPA, until 3 months after.