: Banks cannot penalise borrowers availing moratorium benefit: SC #FinanceIndia #StockMarketNEWS #Business PTI New Delhi Banks are free to restructure loans but they cannot penalise honest borrowers

@StockMarketNEWS Mon 07 Sep, 2020

Posted in: #Business #FinanceIndia #StockMarketNEWS

Banks cannot penalise borrowers availing moratorium benefit: SC #FinanceIndia #StockMarketNEWS #Business
PTI

New Delhi

Banks are free to restructure loans but they cannot penalise honest borrowers by charging interest on deferred EMI payments under the moratorium scheme during the COVID-19 pandemic, a petitioner opposing the move said in the Supreme Court on Wednesday.

A bench headed by Justice Ashok Bhushan, which commenced final hearing on a batch of pleas raising the issue of interest on instalments deferred under the scheme during the moratorium period, was told that paying interest on interest is a “double whammy??? for borrowers.

Senior counsel Rajiv Dutta, appearing for the petitioner Gajendra Sharma who has taken home loan from a bank, assailed the accrual of interests on EMIs even during the moratorium period.

“RBI came out with the scheme and we thought that we will be paying the EMI after the moratorium period and later we were told that compound interest would be charged and it will be double whammy for us as we will be paying interest on interest,??? Dutta told the bench.

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