Finance Minister Nirmala Sitharaman announced the third tranche of the economic package for agriculture and allied sectors such as fisheries, dairy and animal husbandry. FM in her second press conference further unveiled details of the Rs 20 lakh crore economic package to help the Atmanirbhar Bharat Abhiyan (India’s self-reliant campaign). She said the new initiatives focus on migrant workers, street vendors, small traders, the self-employed and small farmers.
Finance minister Nirmala Sitharaman on Wednesday announced credit guaranteed loans to micro, small and medium enterprises (MSMEs), expected to help about 4.5 million units to get back to business. Announcing the details of the ₹20 trillion fiscal stimulus package, Sitharaman said the collateral free, automatic loans will benefit MSMEs with up to ₹25 crore outstanding loans and ₹100 crore sales.
RBI Governor meets MD & CEOs of Public and Private Sector Banks, NBFCs & Mutual Funds to review theCurrent Economic condition, over Video Conference. Credit flows to different sectors of the economy, including liquidity to Non-Banking Financial Companies, Micro Finance Institutions, Housing Finance Companies, Mutual Funds, etc.;Post lockdown strategies for supply of credit, including working capital, to MSMEs, traders and bottom of pyramid customers in semi-urban, rural and urban areas; Impact of measures taken by the Reserve Bank with regard to the provision of liquidity etc.
This is an unconventional monetary policy tool. It involves printing money and distributing it to the public. Milton Friedman coined this term. It basically denotes a helicopter dropping money from the sky. Friedman used the term to signify “unexpectedly dumping money onto a struggling economy with the intention to shock it out of a deep slump”.
The Reserve Bank of India (RBI) has announced further measures, including extending the time for realisation and repatriation of proceeds for exports made up to or on July 31, 2020 to 15 months from the date of export against nine months earlier, while upping the temporary accommodation it provides to States and Union Territories to deal with the COVID-19 pandemic. The central bank also said it is not activating the counter cyclical capital buffer for banks.