The SC refuses to accept the plea for a fresh loan moratorium during the Covid-19 crisis
May 11, 2021, the SC turned down a Public Interest Litigation(PIL) demanding a loan moratorium in view of the prevailing pandemic Covid and said the issues raised in the PIL are the realm in policy decisions.
After the imposition of the nationwide lockdown to rein in the disease’s spread, the Reserve Bank of India announced a loan moratorium in 2020.
The one-time loan restructuring plan was reopened by the Reserve Bank of India last month, to benefact many individuals and micro-enterprises affected by the state-wise lockdown midst the second wave of the pandemic.
On March 30, 2021, small business entrepreneurs and individuals that did not avail loan resurrection earlier having exposure of up to Rs 25 crore and declared as standard, are eligible for loan restructuring in the second wave.
In a speech last month, Mr Shakinta Das the RBI governor said” Resurgence of Covid-19 pandemic in India in recent weeks and the associated containment measures adopted at local and regional levels have created new uncertainties and impacted the nascent economic revival that was taking shape. In this environment, the most vulnerable category of borrowers are individual borrowers, small businesses, and MSMEs,”