Moneycontrol

Budget 2021

Associate Partners:

  • SMC
  • Samsung
  • Volvo

Moneycontrol

Budget 2021

Associate Partners:

  • SMCSamsungVolvo
Webinar :Join an expert panel for a webinar on Smart investments for a secure retirement January 28, 2021. Register now!

FinMin sets up expert committee to assess impact of interest waiver during the moratorium period

This comes at a time when the Supreme Court is hearing a batch of petitions seeking interest waiver during the loan moratorium period.

September 11, 2020 / 07:43 PM IST

The Finance Ministry on September 10 said it has constituted a three-member expert committee to assess the impact of a waiver of interest and interest on interest accrued during the six-month moratorium period announced in wake of the COVID-19 pandemic.

The committee will be chaired by Rajiv Mehrishi, former Comptroller and Auditor General (CAG) of India. Ravindra H Dholakia, former member of the Reserve Bank of India's Monetary Policy Committee, and B Sriram, former managing director of the State Bank of India and IDBI Bank, are the other two members.

"Various concerns have been raised during the proceedings of the ongoing hearing in the Supreme Court of India, in the matter of Gajendra Sharma versus 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 ministry said in a statement.

The government said that the committee's terms of reference include assessment of the impact of the interest waiver on the Indian economy and financial stability. It will also table suggestions to mitigate financial constraints of various sections and measures to be adopted for the same.

The committee will submit its report in a week, during which time it can consult banks or other stakeholders.

Close

COVID-19 Vaccine

Frequently Asked Questions

View more
How does a vaccine work?

A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine.

How many types of vaccines are there?

There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine.

What does it take to develop a vaccine of this kind?

Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time.

View more
Show

This comes at a time when the Supreme Court is hearing a batch of petitions seeking interest waiver during the loan moratorium period. A three-judge bench on September 10 adjourned the hearing to September 28, adding that no further adjournment would be allowed in the matter.

In the meantime, the apex court ordered an interim extension of the loan moratorium period, while reiterating that its September 3 order directing banks not to declare accounts as non-performing assets (NPAs) will remain in effect until further orders.

In March, the Reserve Bank of India (RBI) had granted a three-month moratorium on repayment of term deposits, which was later extended until August 31. The move, aimed at providing borrowers relief during the COVID-19 pandemic, covered both interest and principal repayment.
Moneycontrol News
first published: Sep 10, 2020 10:39 pm
Sections