Govt sets up panel under Rajiv Mehrishi to gauge impact of interest waiver during Covid moratorium

The committee will also make suggestions to “mitigate financial constraints of various sections of society in this respect and measures to be adopted in this regard”

The government on Thursday set up a panel under former comptroller and auditor general Rajiv Mehrishi to assess the impact of “waiving of interest and waiving of interest on interest on the Covid-19-related moratorium” on the economy and financial stability. The panel, which also comprises Ravindra Dholakia, ex-member of the RBI’s Monetary Policy Committee, and former SBI managing director B Sriram, will submit its report in a week.

In a release, the finance ministry said: “Various concerns have been raised during the proceedings of the ongoing hearing in Honourable Supreme Court of India, in the matter of Gajendra Sharma Vs Union of India and Others, of the matter regarding the relief sought in terms of waiver of interest and waiver of interest on interest and other related issues. The government has accordingly constituted an expert committee for making an overall assessment so that its decisions in this regard are better informed.”

The committee will also make suggestions to “mitigate financial constraints of various sections of society in this respect and measures to be adopted in this regard”. At the same time, it’s also empowered to make any other recommendation or observations that may be necessary given the current situation, according to the statement. The panel can consult banks and other stakeholders.