Plea In SC For Moratorium On Classifying Loan Accounts As NPA

New Delhi- A petition has been filed in the Supreme Court seeking directions to the government to permit banks to offer a moratorium on payments to borrowers for the period from June to August this year due to the financial impact of the second wave of coronavirus.

The PIL, which is likely to be taken up in the coming days, sought directions to the Centre and the Reserve Bank of India to issue a notification to all the banks to refrain from classifying any loan account as NPA for non-payment of EMI from April to August at the very least in view of the effects of the pandemic on the middle class.

The plea also sought a direction to authorities concerned to consider formulating a stimulus package that will help those aggrieved to move forward from the pangs of this second wave and a possible imminent third wave.

The petition filed by Trust Distress Management Collective, an NGO, claimed that scores of people from the middle class have availed loans from banks and their prime grievance is that they are facing extreme difficulty to pay the EMIs since the onset of the second wave of COVID-19, especially due to the stringent state-wise lockdowns.

It contended that the RBI had granted the relief of moratorium for three months, which was subsequently extended to six months, and had also provided for the facility of restructuring loans last year when the situation was not as bad as it is in the second wave.

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