The Supreme Court on Thursday sought the views of the finance ministry on whether customers can be granted interest waiver on loans during the moratorium period, which has been opposed by the RBI in its affidavit to the apex court.

The court was dealing with a petition filed by one Gajendra Sharma, a UP businessman who has questioned the constitutional validity of the RBI’s circular dated March 27 which had offered a moratorium on loans till May that was later extended till August though there was no exemption in terms of accumulated interests components.

A bench of Justices Ashok Bhushan, Sanjay Kishan Kaul and M.R. Shah said the authorities must take into consideration the interests of the borrowers also as “…these are not normal times”.

“On the one hand you are granting moratorium and nothing on interest. It’s more detrimental,” Justice Shah observed.

The bench told the ministry to also look into the matter of additional interest on the accumulated interests for six months.

Solicitor-general Tushar Mehta appearing for the Centre sought a week’s time for the finance ministry to file its response on the issue.

The matter would be heard again on June 12.

During the hearing the bench also took exception to the leak of the RBI’s affidavit to the media even before the hearing started on Thursday.

The RBI in its affidavit said it was taking all possible measures to provide relief with regard to debt repayments on account of the fallout of Covid-19, but “… it does not consider it prudent or appropriate to go for a forced waiver of interest, risking the financial viability of the banks it is mandated to regulate, and putting the interests of the depositors in jeopardy”.

According to the RBI, customers cannot seek as a matter of fundamental right the benefits of loan or waiver as they depend on various market factors.

The RBI denied the action of the imposition of interest during the moratorium period was devastating, wrong or in a way had taken away the benefit of imposing the moratorium.