Video Editor: Sandeep Suman & Rahul Sanpui
The Reserve Bank of India (RBI) has taken a series of effective steps and pointed the finance ministry in the right direction in order to minimise the economic slowdown due to COVID-19 and lead us on a faster route to recovery.
They not only worked on the right issue at the right time, but were also very careful with their steps and policies.
Experts have already said that the RBI has played a crucial role in the Centre’s ‘half u-turn’ by finally giving the states their GST arrears albeit through loans, whereas initially they had said that they won’t be able to give it.
Steps taken by RBI to curb the economic slowdown:
- Decided to keep the capital low, and readily available
- Liquidity and loan moratorium
- Keeping the bond market yield in check
- Keeping a check on inflation
- Doubled the rate of bonds in the open market
- Make arrangements for the banks to give short-term loans
- Make arrangements for home loans
RBI has also suggested that the Centre should revise the loan calendar to ensure a smooth financial future for the country. They have also urged the Centre to use the power at its disposal to take ‘desperate measures during desperate times’. However, the Centre has not accepted the suggestion.
Despite the RBI going strong to tackle the slowdown, they can’t do it alone. They will need the Centre’s backing on the non-striker end, just like a Sachin Tendulkar needs a Virender Sehwag.