Supreme Court asks Centre to implement interest waiver scheme on loan moratorium before Nov 15

The Supreme Court on Wednesday asked the Centre to implement its decision to waive “interest on interest" before 15 November while hearing two petitions challenging the interest on interest on the loan during the moratorium period.

On 3 October, the central government said that it will 'interest on interest' on loans of up to ₹2 crore for six months through to the end of August. The government’s decision would come into effect before 15 November, Solicitor General Tushar Mehta told the apex court.

"Banks will waive interest on interest and then will be compensated by govt and the calculation will have different modalities. We will have to ensure that bank gives us a proper format," Mehta added.

The Supreme Court on Wednesday told the Centre that the common man's Diwali is in the government's hands, as it sought implementation of the decision to waive interest-on-interest for loans up to Rs 2 crore for eight categories.

A three-judge bench of the apex court, headed by Justice Ashok Bhushan and also comprising Justices MR Shah and RS Reddy said,"Why one-month time to implement such a small decision....Benefits of government’s concessions to borrowers up to ₹2 crore must be implemented as soon as possible," the bench said."

The top court has scheduled the matter for further hearing on November 2.