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Panel to Assess Impact of Waiving Loan Interest

Panel to Assess Impact of Waiving Loan Interest:

Recently, the Union government has constituted an expert committee to measure the economic impact of waiving of interest and interest on the Covid-19 related loan moratorium.

Panel to Assess Impact of Waiving Loan Interest

Key Points

  • Chairmanship: The expert panel will be chaired by Rajiv Mehrishi, former Comptroller and Auditor General (CAG) of India, and will submit its report within one week.
  • Task: It will measure the impact on the national economy and financial stability of waiving of interest and Covid-19 related moratorium.
    • It will also give suggestions to mitigate financial constraints of various sections of society in this respect and measures to be adopted in this regard.
  • Background: The move came as various concerns have been raised during the ongoing hearing in the Supreme Court in the matter regarding relief sought in terms of waiver of interest and waiver of interest on interest and other related issues.
    • The Court has extended its interim order that no account is to be declared Non Performing Assets (NPA) till further orders.
    • The Court granted two weeks to the Centre and the Reserve Bank of India (RBI) to file the affidavit and place before it the decisions taken in this regard.