- Weak economic conditions and stressed asset quality encourage banks to increase their investments in government securities.
- Due to countercyclical fiscal policy adverse impact on the overall economic activity was somewhat reduced.
- Proactive monetary, liquidity and regulatory measures by the Reserve Bank ensured continued credit flows not only through banks but also through market instruments like corporate bonds, commercial paper, etc.
- Several fiscal packages were announced under the umbrella scheme of the Atma Nirbhar Bharat's mission in response to the COVID crisis.
RBI’s market operations helped banks in funding during Covid
Published on July 08, 2022
Current Context: RBI's regular market operations and the monetary policy stance helped the banking system balance the financing needs of the various sectors of the economy during the Covid times.
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