Economics and welfare

There is merit in RBI's position on loan moratorium

Economic recovery from the Covid-19 shock will need to be carefully nurtured. Policy decisions in the near term will determine the strength and durability of the recovery. Since decisions in a democracy are often influenced by various institutions, it is important that the system works with the objective of bringing things back on track as soon as possible. The possibility of attaining this objective will soon be tested. The Supreme Court has asked for the government’s opinion on waiver of interest on loans during the ongoing moratorium period, and observed that it cannot prioritise economics over health issues. The Reserve