EXPERT PANEL SET UP TO CONSIDER WAIVING OF INTEREST ON LOANS

With the Supreme Court breathing over its neck giving a 2-week ultimatum on Thursday to decide, the Modi Government has constituted a 3-member expert committee headed by former comptroller and auditor general Rajiv Mehrishi to recommend within a week on the financial stability of waiving interest as also interest on interest on the EMIs on the Covid-related moratorium of six months that ended on August 31.

A Finance Ministry announcement said the committee will measure the impact on the national economy and suggest steps to mitigate financial constrains of various sections of society.

Two other members of the committee are Dr Ravindra H Dolakia, former Professor, IIM Ahmedabad & ex- Member, Monetary Policy Committee of Reserve Bank of India, and B. Sriram, Former Managing Director, State Bank of India & IDBI Bank.

The announcement said the committee may consult banks or other stakeholders, as deemed necessary. It said the committee will make an overall assessment so that its decisions are better informed.

It refers to various concerns raised during the hearing in the Supreme Court on a petition by Agra-based Gajendra Sharma, a borrower of the bank loan, seeking the relief in terms of waiver of interest and interest on interest.