The Supreme Court on Thursday asked the central government why the credit card should get the benefit of compound interest (interest on interest) for the duration of the moratorium. The apex court said that credit card users were used for purchases and not for loans.
A three-member bench headed by Justice Ashok Bhushan stated this when Solicitor General Tushar Mehta, appearing for the Central Government, said that credit card holders are also receiving messages for payment of ex-gratia amount. He said that I also use a credit card and I have received such a message. On this, the bench said that credit card users used credit cards to buy things. It is not a loan. They should not get the benefit of a Moratorium.
During the hearing, the Solicitor General has said that it is the responsibility of the banks to deposit the waiver of interest on the moratorium period interest in the accounts of the borrowers. There is no need to remind banks of this. This benefit is not available to defaulters dating back to the Corona period.
Solicitor General Mehta cited the affidavit filed on October 9 and presented the complete details in a sequential manner. He said that the corona epidemic has become a national disaster and the RBI along with the government has taken all effective steps. The Solicitor General said that the bank has been asked to restructure the payment plan. For this, banks have started contacting the borrowers. He also said that the defaulters before the Corona period would not get the benefit of the new scheme. Mehta stated that those who did not pay EMI during the moratorium period will not be punished, whether they have used the moratorium properly or not.
At the same time it was said from many sectors that they did not get any relief from the government in this period of the Korana crisis. On this, the Supreme Court has asked all the parties to present the suggestion briefly before the RBI and the Central Government.