Financing business revival without pain

Here is the design of an impactful, fiscally responsible programme that removes the bottlenecks in credit decision-making

Covid-19 requires exceptional, yet responsible and affordable policy response, to financially help Indian businesses to support their revival. We set out here the design of an impactful, fiscally responsible programme that removes the bottlenecks of risks in credit decision making.
 

The proposed programme design (i) eliminates active credit decision making with the use of GST return filings for beneficiary classification, identification, loan amount quantification, and loan recovery; (ii) leverages the Reserve Bank of India's (RBI’s) balance sheet for liquidity support without parking credit risk of loans on RBI’s balance sheet; and (iii) uses the State Bank of India’s (SBI’s) institutional