Government needs to recapitalise banks

Three-four months from now, the supply issue will go away depending on how this process goes on, and demand constraint will come back

In my opinion, the Reserve Bank of India (RBI) has done more than anybody expected.
 

So far as EMIs are concerned, you are stopping the clock on March 31. This means no EMIs are to be paid till clock starts again, say on August 1. Now, think what happens to banks’ revenue situation. It will be okay in their balance sheets because EMIs will be shown as accounts receivables. However, banks are not getting interest on their assets, but they have to pay to their depositors.

This means, banks are going to run into a problem of negative income