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online loans Loan repayment moratorium can’t be extended: RBI in Supreme CourtThe Reserve Bank of India on Saturday filed an affidavit in the Supreme Court rejecting the demand of various sectors, including real estate, for extension of loan repayment moratorium that was granted from March 1 till August 31 citing pandemic caused depressed economic activity. The top court is hearing the petitions, including the one which has sought a direction to declare the portion of an RBI notification, issued on March 27, “ultra vires to the extent it charges interest on the loan amount during the moratorium period.” The RBI has recently filed an affidavit in the apex court recently saying that loan moratorium exceeding six months might result in “vitiating the overall credit discipline”, which will have a “debilitating impact” on the process of credit creation in the economy. These affidavits were filed following the top court October 5 order asking them to place on record the K V Kamath committee recommendations on debt restructuring because of the Covid 19 related stress on various sectors as well as the notifications and circulars issued so far on loan loans

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