Print money and finance fiscal deficit? Why RBI doesn't agree with idea

The central bank has managed the government's borrowing programme well, helping in liquidity.

Nobel Laureate Abhijit Banerjee last month said India should print money to finance the government's fiscal deficit, offering advice for an economy devastated by a second wave of Covid-19 infections.

Experts disagree with the idea and the Reserve Bank of India (RBI), which has the sole right to print money, is not comfortable with it as well. Here key things to know about printing money to finance deficit.

How money is printed

The RBI has two ways to infuse money in the system. One is by buying dollars from the market while infusing rupee liquidity in return. The second way