SC Seeks Centre’s Response on Interest Waiver, Says Govt Seems to be Hiding Behind RBI

New Delhi: In a significant development, the Supreme Court (SC) today hearing a plea seeking interest waiver for six months during the loan moratorium period granted by the Reserve Bank of India (RBI), asked the centre to clarify its stand the issue of waiving interest on September 1. 

A bench led by Justice Ashok Bhushan directed the Centre to file a response and said ample powers are available with the government under DMA. The Centre must clarify its position on waiver of interest, waiver of interest on interest.

Government should not think about only business, should also think about plight of people. Stand of RBI so far is aligned with concerns of the industry, the court observed.

The bench further said that government seems to be hiding behind the RBI.

The SC has previously said there is “no merit in charging interest on interest”.