Supreme Court asks RBI to clarify on loan interest

New Delhi: The Supreme Court on Friday asked Solicitor General Tushar Mehta to convene a meeting of the Union Finance Ministry and RBI officials over the weekend to decide whether interest incurred on EMIs during the moratorium period can be charged by banks.

A bench comprising Justices Ashok Bhushan, Sanjay Kishan Kaul and MR Shah queried Mehta as the court was concerned since the Centre has deferred loan for three months.

"Then how can interest of these 3 months be added?" the apex bench asked. Mehta replied: "I need to sit down with the RBI officials and have a meeting."

SBI`s counsel, senior advocate Mukul Rohatgi, intervened during the proceedings and said: "All banks are of the view that interest cannot be waived for a six-month EMI moratorium period".