Top Court Lists Hearing On Centre's Interest Waiver Plan

The Supreme Court today adjourned a hearing in the matter of waiving “interest on interest” on loans up to ₹ 2 crore, frozen during a six-month moratorium granted because of the coronavirus crisis, to Wednesday. The top court was due to hear the matter on Tuesday on a waiver of interest on deferred EMIs – or interest on interest – to help small borrowers during the coronavirus pandemic, after it told the government last week that its affidavit “fails to deal with several issues raised by petitioners” and asked for more details from the RBI and centre on their plan to help the borrowers.

The outcome of the case could have far-reaching consequences not only for millions of borrowers, but also for banks.

The government has already told the court it would waive the compound interest on loans up to ₹ 2 crore under a COVID-19 support plan, in a move that will bring relief to millions of borrowers. It has also said it would not be possible to further supplement the already-announced relief packages, requesting the court not to permit any further judicial review by the petitioners.

Last week, the Reserve Bank of India appealed to the top court to let banks classify loans as non-performing assets – or bad loans – saying a ban imposed to help borrowers in the COVID-19 pandemic could greatly harm the country’s financial system.

In a filing to the Supreme Court late on Friday, the RBI warned that failure to immediately lift an interim stay on banks classifying any loan as a non-performing asset would also undermine the central bank’s regulatory mandate.

In its October 5 order, the Supreme Court had asked the government to consider the concerns of real estate companies and power producers in a fresh plan on interest waiver.

Comments

Post a Comment

Popular posts from this blog

Top features why a dedicated WordPress hosting is best for your website

Dedicated servers are often looked upon as over-expensive web hosting solutions. You may consider them an overkill for your business, but there is no denying the fact that they are the best hosting solution out there. Today, we will tell you some features of a dedicated WordPresshosting that makesit the best for your business. Reliability This is the key factor why most businesses choose a dedicated WordPress server hosting to host their website. A dedicated WordPress hosting server is administered and maintained by a team of professionals who provide online support and work towards optimising the performance of the server. Unlike shared and VPS hosting plans which give you access to limited resources, dedicated server hosting provides a good hosting support. This in turn increases the reliability. Scalability Every business aims to grow their customer base and increase revenues. However, with the limited resources provided by theshared hosting, it can be challenging to handle the high...
Read more

Elon Musk's "Use Signal" Post Spurred Massive Rally For The Wrong One

A two-word app recommendation from Elon Musk has turned into a massive rally in the shares of a tiny medical device company in another case of mistaken identity. “Use Signal,” the Tesla Inc. chief executive officer wrote on Twitter on Jan. 7, apparently referring to the encrypted messaging service. By the end of the day, Signal Advance Inc. shares had surged more than sixfold. That was enough to push Signal Advance’s rally more than 5,100% in three trading days giving it a market valuation of $390 million. Despite reports about the confusion on Friday, the stock has continued to rally. Shares of the Rosharon, Texas-based company surged as much as 885% on Monday before paring the gains. “We strongly recommend people do their due diligence and always invest with care,” the company’s chief executive officer, Dr. Chris Hymel, said when reached by phone on Monday. Signal Advance doesn’t have an association with Musk or the Signal app, he said. Signal...
Read more

RBI Policy: MPC may keep policy rate unchanged at 6%; owl may sound hawkish

N- Urjit Patel, Governor of the Reserve Bank of India (RBI), and his five colleagues on the Monetary Policy Committee will not find it too hard to keep the key policy interest rate unchanged at the upcoming policy review on February 7. The 2-day deliberations on February 6 and 7 by the MPC on the repo rate decision are expected to remain tilted towards a pause mode, keeping the near term outlook hawkish. However, they may raise rates later given the risks of higher inflation with fiscal slippages and higher food prices with the government planning to increase the Minimum Support Price (MSP). In the Budget last week, the government promised to ensure MSP of key crops at 1.5 times the cost of production. This could mean at least a 50-70-basis-points increase in the headline inflation number. While banks and bond markets have already signaled the end of the interest rate easing cycle, the MPC may keep the repo rate unchanged at 6 percent. Inflation risks Although, experts suggest the infl...
Read more