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

SG: That is why I said the RBI & GOI can put their heads together. If bank does not put forth a resolution plan in place, then it can be taken note of.

Justice Shah: & in the mean time what will happen?

Salve: No, we'll clarify that.

Justice Bhushan to SG: Their prayer is also about additional relief, you are talking about what relief you have already given.

Bench: What about demands of Compound interest that ensue from yesterday? Moratorium and penal interest cannot go together at all. RBI has to clarify this and whether the penal charges will apply during moratorium.

SG: While not disputing every sector is under stress, so is the country, so is the world. It is best to operate with checks and balances every two weeks.

SG: Even if bank does not restructure my account as of now and the account slips into NPA, the moment the benefit comes into being on November 1, the account shall again become live.

SG: DMA says that the Govt. "may" do it. So far, the NDMA deems it appropriate for the RBI to play a supervisory role. This is not cast in stone I want to demonstrate how the scheme would work.

Salve: These are the people who don't have financial backbone to stand up to a disaster. Industrial problems are a different issue and need to be tackled differently.

Salve: Problems differ for corporates and for common man.

If we could identify borrowers, for eg. for education loans, housing loans for middle class and lower middle class people, for MSME's - relief can be provided. 

Salve: I discussed with Chairman of a bank about the measures which can be adopted. I told him to think of a cap.

A common man's problems are a far more serious problem which needs to be addressed - someone which might have lost his job/car.

Justice Bhushan asks the SG & Salve what kind of norms will be effectuated.

Salve: Committee for norms for resolution. Power sector will come with its own norms because Power has been burdened which the banks cannot take on.