RBI gets into the act; lays foundation for more measures going ahead

The signal really given by the RBI is that while it does believe today that things have not taken a turn for the worse as all enterprises are better prepared than last year while facing lockdowns

The Reserve Bank of India's (RBI's) emergency measures announced on Wednesday are well guarded and tuned to the evolving situation. After taking cognizance of the pandemic impact, the RBI believes that the economy has not yet derailed, and some of the indicators for April are indicative of stability rather than disruption. This view may be contested at the ground level, with several small businesses being shut in the midst of uncertainty. Nonetheless, there have been some measures announced from the point of view of supporting the economy.

The liquidity measures announced are more in line with what was done last