The second wave of Covid has worsened economic conditions again. In such a situation, a 6-month moratorium will be given to pay the bank's dues. This demand has been made in a petition filed in the Supreme Court.
According to the report of Live Law, this petition has been filed in the Supreme Court on behalf of Advocate Vishal Tiwari. The petition urges that the Supreme Court order all financial institutions that the property of any citizen should not be auctioned for 6 months. Nor should any account be declared non-performing assets for 6 months, that is, NPA.
The Reserve Bank of India (RBI) has not yet taken any decision regarding the moratorium after the second wave of Covid surfaced. However, last week RBI had said that banks can restructure the loan for a period of 2 years. The petition seeks to extend the time limit of 2 years under the Re-Structuring Scheme.
The petition alleged that the central government and the RBI have not taken any steps to deal with the economic crisis that has been faced by the people due to Covid. Nor has any financial package been announced to reduce its impact. The petition stated that the respondents violated the fundamental right to livelihood by not doing so. In such a situation, it is necessary for the court to intervene in this matter immediately in the interest of the general public.
It is not yet clear whether the court has accepted the petition or not? If the petition is accepted, what further steps can the RBI take? However, it is clear that RBI can take steps regarding this in future. Some of these steps may be announced after the Monetary Committee meeting to be held in the first week of June. Depending on the seriousness of the situation, steps can be taken even earlier.
The RBI has recently approved a new re-structuring scheme in view of Covid. Individuals, small businesses, and MSMEs with a total exposure of up to Rs 25 crore and who have not benefited from the earlier restructuring; Those classified as Standard Loans as of March 31, 2021, will be eligible for this under Resolution Framework 2.0. However, it is up to the banks whether they will give you the benefit or not and how it will give them, it is also up to them.
Like and Follow us on :