New Delhi, Sep 19 (IANS): The Rajiv Mehrishi-headed experts committee set up for assessment of relief required by bank borrowers in the wake of the pandemic is of the view that interest on interest should not be waived and it may recommend the same to the Centre, sources said.

The interest on interest is likely to be in the range of Rs 10,000-20,000 crore.

People in the know of things said that the waiver of interest on interest would amount to "rent seeking".

The committee was formed on September 10 after the Supreme Court asked the Centre to consider a plea for not charging interest and interest on interest for deferred EMIs during the moratorium period and also not downgrade the credit and asset classification of the borrowers.

Government had constituted the Expert Committee for making an overall assessment so that its decisions in this regard are better informed.

The committee, to be headed by the former Comptroller and Auditor General (CAG) Mehrishi, includes former IIM-Ahmedabad professor and former member, Monetary Policy Committee of the Reserve Bank of India, Ravindra H. Dholakia, and former Managing Director, State Bank of India and IDBI Bank, B. Sriram.

The committee was to submit its report within one week of its formation.