The set of measures rolled out by the Reserve Bank of India (RBI) on Friday build on its earlier announcements, and the cumulative effect is likely to improve the effectiveness of the monetary stimulus of more than 3% of gross domestic product (GDP) it has injected into the economy.
The central bank has tried to make sure that the relief extends to smaller, more vulnerable companies and non-banking finance companies (NBFCs).
And yet, the package of policy and liquidity measures is not enough to kickstart the Indian economy disrupted by the covid crisis and an unprecedented lockdown.
RBI has fine-tuned its targeted long term repo operations (TLTRO) to nudge banks to lend to small companies. Earlier, the centrabl bank had opened up a ₹3.74