Leadership messaging is the key in challenging situations and the Reserve Bank of India governor Shaktikanta Das did exactly that when he called the measures a ‘continuing response’ to the ‘emerging’ situation.
Vedanta appreciates and congratulates the Governor for his strong leadership in these times. Markets and businesses will now be reassured that the central bank won’t shy away from doing more if the situation demands it.
The RBI’s Bazooka 2.0 is aimed at deepening the availability of credit from banks through additional TLTRO (targeted long term repo operations) of ₹50,000 crore with focus on small and medium businesses as well as NBFCs with the additional ₹50,000 crore support to key financial institutions other than banks.