The Supreme Court on Wednesday directed the Centre and Reserve Bank of India (RBI) to review the moratorium scheme on term loans and create tailored schemes for various sectors, including agriculture.

“The central government can't raise its hands in helplessness. It can’t say now that it is between banks and customer," the apex court bench, headed by Ashok Bhushan, said. It was the Centre's duty to ensure that “benefits are given to customer purposefully", the bench added.The three-judge bench, also comprising Justices Sanjay Kishan Kaul and MR Shah, deferred hearing in the case till the first week of August.

The central bank had on 22 May extended moratorium on term loans till 31 August amid the nationwide lockdown due to covid-19. In March, the central bank had allowed a three-month moratorium from paying EMIs and other loans on payment of all term loans due between 1 March and 31 May.

The Supreme Court on Wednesday directed the Centre and Reserve Bank of India (RBI) to review the moratorium scheme on term loans and create tailored schemes for various sectors, including agriculture.

“The central government can't raise its hands in helplessness. It can’t say now that it is between banks and customer," the apex court bench, headed by Ashok Bhushan, said. It was the Centre's duty to ensure that “benefits are given to customer purposefully", the bench added.The three-judge bench, also comprising Justices Sanjay Kishan Kaul and MR Shah, deferred hearing in the case till the first week of August.

The central bank had on 22 May extended moratorium on term loans till 31 August amid the nationwide lockdown due to covid-19. In March, the central bank had allowed a three-month moratorium from paying EMIs and other loans on payment of all term loans due between 1 March and 31 May.