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 In recent days ,RBI has taken several steps to mitigate the impact of covid-19 to Indian economy.The successive reduction in the policy rate -first by 75 basis point (100 basis point =1 %) and again by 25 basis points,means that RBI is trying to push money into the market.Reducing policy rate means that the commercial bank has good option to borrow money money from the Central Bank.Currently Policy rate stands at 4% and Reverse repo rate at 3.35 % ,MSF rate at 4.25 % and Bank rate is also 4.25 %. The result of these step will eventually help the stressed sector will provide some relief particularly to the MSME and the corporate borrowers who are likely to withnes liquidity challenges for an extended period of times. Das said a combination of monetry,fiscal and administrative measures being undertaken by RBI and the and government would create conditions for a revival of economic activity in the second half of FY21. Some recent example of committee formed by RBI are :RBI sets up co...

FRBMA is the policy enacted in 2003 to reform fiscal policy. Through this reform government is made responsible and given various target and suggestion. The rule under the act were notified with effect from july,2004. The main features of the FRBMA are following. 1.The act mandate the central government to take appropriate measures to reduce fiscal deficit to not more than 3 percent GDP and to eliminate the revenue deficit by March 31 ,2009 and thereafter buildup adequate revenue surplus. 2. It requires the reduction in fiscal deficit by .3 percent of GDP each year and the revenue deficit by 0.5 percent. If this is not achieved through tax revenues ,the necessary adjustment has to come from a reduction in expenditure. 3. The actual deficit may exceed the target specified only on the grounds of national security or national calamity or such other exceptional grounds as the central government may specify. 4. The Central government shall not borrow from the Reserve Bank Of India except by...