The Reserve Bank of India (RBI) on Thursday asked the Supreme Court to lift its interim order in which it said that accounts not declared as NPAs till August 31 are not to be declared as NPAs till further orders.

During Thursday's hearing in the loan moratorium case, the lawyer representing the RBI told the Apex court that banks are facing troubles due to the directive. The Supreme Court had earlier passed an interim order on Sept 3, directing banks to not proclaim accounts as NPAs till further orders.

V Giri, who appeared on behalf of the RBI in the loan moratorium hearing, told the SC bench headed by Ashok Bhushan that banks are facing difficulty due to the order banning declaration of NPAs. However, the SC bench said that it would take up the matter on November 18 and adjourned the case for the day.

Notably, the RBI and the Finance Ministry had already introduced a scheme under which entitled borrowers would be credit the difference between simple and compound interest during the 6-month moratorium period.  Senior advocate Rajiv Dutta, who appeared for one of the petitioners in the case during today’s hearing, asked for his plea to be disposed of after the Centre announced the interest on interest waiver scheme.

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