Reserve Bank of India announced a moratorium on loans from March 01, 2020, till August 31, 2020. Supreme Court in its interim order on September 03, 2020, put a stay on the classification of accounts by Banks as NPA which are standard as on August 31, 2020. The next date of hearing is on September 10, 2020.
The Apex Court’s order came during the hearing of a batch of petitions that challenged the interest component of the Reserve Bank of India’s (RBI) circular that provided for loan moratorium amid the COVID-19 pandemic.