Govt sets up expert panel to look into issue of waiver of interest during moratorium
Solicitor General Tushar Mehta, appearing for the Centre, said that the government at the highest level is considering all issues raised in the batch of petitions and within two weeks, appropriate decision will be taken with regard to the problems faced by different sectors.
The government on Thursday said it has constituted an expert committee under former CAG Rajiv Mehrishi to look into the much-debated issue of waiver of interest on loans during the moratorium period.
The announcement came hours after the government informed the Supreme Court that an expert panel has been set up to look into the issue of interest being charged by banks on instalments deferred during the moratorium.
The RBI had announced the loan moratorium to help borrowers combat the impact of the COVID-19 pandemic.
Meanwhile, the apex court on Thursday extended its interim order that no account is to be declared NPA till further directions. It gave two weeks' time to the Centre and Reserve Bank of India (RBI) to file an affidavit and place before it the decisions taken in this regard.
The committee will measure the impact on the national economy and financial stability of waiving of interest as well as interest on interest on the COVID-19 related moratorium.
It will suggest steps to mitigate financial constraints on various sections of society, an official statement said.
Headed by Mehrishi, the expert committee includes Ravindra H Dholakia, former professor, IIM Ahmedabad and ex-member, Monetary Policy Committee of RBI; and B Sriram, former managing director, State Bank of India (SBI) and IDBI Bank.
The committee will submit its report within one week, the statement said, adding SBI will provide secretarial support to the panel.
The committee may consult banks or other stakeholders, as deemed necessary, it added.
Earlier in the day, a bench of Justices Ashok Bhushan, R Subhash Reddy and M R Shah posted the matter for further hearing on September 28 and said that the court expects that the government and RBI will actively consider all the issues.
The bench clarified that it was giving one last opportunity and thereafter the matter will not be adjourned.
The top court was hearing a batch of pleas which have raised the issue of interest being charged on instalments which were deferred during the moratorium period.
Solicitor General Tushar Mehta, appearing for the Centre, said that the government at the highest level is considering all issues raised in the batch of petitions and within two weeks, appropriate decision will be taken with regard to the problems faced by different sectors.
Watch Zee Business live TV below:
The bench told Mehta that concrete decisions should be taken with clarity so that the matter does not get adjourned again.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Retirement Planning: SIP+SWP combination; Rs 15,000 monthly SIP for 25 years and then Rs 1,52,000 monthly income for 30 years
Top Gold ETF vs Top Large Cap Mutual Fund 10-year Return Calculator: Which has given higher return on Rs 11 lakh investment; see calculations
Retirement Calculator: 40 years of age, Rs 50,000 monthly expenses; what should be retirement corpus and monthly investment
SBI 444-day FD vs Union Bank of India 333-day FD: Know maturity amount on Rs 4 lakh and Rs 8 lakh investments for general and senior citizens
EPF vs SIP vs PPF Calculator: Rs 12,000 monthly investment for 30 years; which can create highest retirement corpus
Home loan EMI vs Mutual Fund SIP Calculator: Rs 70 lakh home loan EMI for 20 years or SIP equal to EMI for 10 years; which can be easier route to buy home; know maths
11:14 AM IST