New Delhi, Sep 1 (IANS): The Centre and Reserve Bank of India on Tuesday informed the Supreme Court that the moratorium on repayment of loans is extendable by up to two years.

Appearing for the RBI and the central government, Solicitor General Tushar Mehta contended before a bench headed by Justice Ashok Bhushan that the Centre is in the process of identifying the distressed sectors to decide what kind of relief could be provided, as per the impact of the hit they have taken.

Mehta clarified that moratorium is capable of being extended as per the circular.

He also informed the top court that the Centre has filed its reply on the powers under Disaster Management Act, and urged the court to allow Centre, RBI, bankers associations to sit together.

The bench replied that it has been hearing about this meeting since the past three hearings on the matter. Mehta submitted that they will identify the class of borrowers.

The bench said it wanted something concrete on the issue.

Mehta reiterated that the moratorium period is anyway extendable by two years. The bench insisted that it will have to take a decision on many other issues on the basis of its merit. Mehta said the court can go through the affidavit and take up the matter in two days.

The bench wanted to know whether a decision can be taken in two days?

Mehta said that may not be possible.

To which, the bench said it would hear on Wednesday the bunch of petitions demanding waiver of interest, or waiver of interest on interest on the deferred EMIs during the moratorium period.