RBI cautions SC of Rs 2 lakh crore loss if interest is waived off during loan moratorium

New Delhi [India], June 4 (ANI): The Reserve Bank of India (RBI) filed an affidavit before the Supreme Court stating to not allow the petition seeking a waiver of interest for six month moratorium period on loan repayments during this COVID-19 period.

The RBI, in its affidavit on Wednesday, stated that if it will waive off the interest on loans during this moratorium period, then it will incur a loss of approximately Rs 2 lakh crore.

The matter will now be heard by the Supreme Court on June 5, Friday.

The RBI filed the reply, after complying with the apex court's order, in which it had asked the RBI to respond to a Public Interest Litigation (PIL) which had sought a direction from the SC to waive off the interest on loans during this six months moratorium period during the ongoing COVID-19 crisis.

The RBI, in its affidavit, stated that the Centre had ordered and given a direction for relief to all the persons who had taken a loan of six months moratorium period keeping in view the COVID crisis. (ANI)