New Delhi, November 19 (Sanmarg) The Supreme Court on Thursday directed the credit card holders to be deprived of the benefits of rebate in the case of banks banning compound interest on EMI.
A three-member bench headed by Justice Ashok Bhushan made it clear during the hearing of the case related to the loan moratorium that the credit card holder is not a borrower, they make purchases, not a loan. In such a situation, they should not be given the benefit of rebate on compound interest.
Meanwhile, Solicitor General Tushar Mehta, appearing for the Central Government, pleaded before the bench that the court should not consider any further relief, as the government had already taken the initiative in this matter. He said that the government is ready to provide all possible help to the affected areas.
The bench also comprises Justice R Subhash Reddy and Justice MR Shah.
The Supreme Court held its last hearing on the Lone Moratorium case on 14 October. During this time, the court said that the interest waiver scheme should be implemented on interest soon. The Center had sought time till November 15 for this.
During today’s hearing, Mr. Mehta gave details of the relief measures taken by the Finance Ministry and the Reserve Bank before the bench.
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