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Covid has shifted policy efficacy away from RBI

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₹99,122 crore to its owner for the last three quarters of fiscal 2020-21, having adopted an April-March cycle. Stretched to four quarters, that would amount to more than twice the payout it made the year earlier, ended June 2020.

Yet, given the acute need of funds for our health emergency, it can’t help the Centre much. The irony here is the bonanza turned over by RBI just before covid struck.

In August 2019, it gave the Centre ₹1.76 trillion for 2018-19, up from ₹50,000 crore the previous year. This hike had raised suspicions of RBI being pressed by the Centre to part with the money it usually held back as ‘provisions’ (marked as an expense) for its contingency buffer against various risks.

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COVID-19
United States
United States
Cases: 46 252 513
Deaths: 750 423
Recovered: 0
India
India
Cases: 34 321 025
Deaths: 459 652
Recovered: 0
Brazil
Brazil
Cases: 21 835 785
Deaths: 608 235
Recovered: 0
United Kingdom
United Kingdom
Cases: 9 215 683
Deaths: 141 607
Recovered: 0
Russia
Russia
Cases: 8 494 589
Deaths: 237 619
Recovered: 0
Detail statistic
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