Kumari Palany & Co

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RBI: EMIs can be differed and delayed but interest for the same?

Posted on: 04/Jun/2020 2:45:43 PM
The Reserve Bank of India has informed that waiver / postponement of interest for the loans taken will undermine the trustworthiness of the banks!

The Reserve Bank of India has explained this in the Supreme Court. Reserve Bank of India has further informed that it has undertaken all possible initiatives to mitigate the difficulties/hardship to the maximum extent possible to the persons who have availed loans!

Initially, RBI came forward to differ the loan EMI payment for 3 months and then, as the impact of coronavirus continued with extended lockdowns, RBI came up with another 3 months EMI postponement.

However, RBI has informed that waiver of the interest to be paid for the loans taken will impair the trustworthiness of the banks! Further, this step would harm the interests of the people who have deposited.

As explained above, whereas 6 months extension for EMIs payment was given, it would not be possible waive the interest payment for the loans availed!