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Since the COVID-19 patients have been discovered in India the onus lies on the central government on how to cope with this adversity. It has already imposed a lockdown of 21 days and whether to continue with this lockdown is its decision. Two former governors of RBI, Raghuram Rajan, and Urjit Patel have come up with their views. As per Urjit Patel, India cannot do what developed economies are doing to stop the lack of demand caused due to the COVID-19 lockdown. He is worried about the impact on the macroecono mic stability of India of such policies. They can issue more cash into the economy but this can also cause inflation. Apart from an increase in inflation, if the government issues more cash into the economy, there will be an increase in fiscal deficit for the government. Pressure will be more on the state government because of the high spending if the central government faces a deficit. A high fiscal deficit could lead to high debt causing a fall in the value of the rupee. ...

Due to the emergence of the COVID-19 outbreak, there has been a problem created for traders because no sales are happening for them. But they still need to pay their dues to the vendors. So, Reserve Bank of India has decided to provide them some relief. They have been given a delay of 3 months in paying their fixed-term loans. However, the Confederation of All India Traders is not so happy with this decision. According to it the traders won be able their dues after 3 months also. Moreover, commercial banks are yet to come up with new loan repayment options as directed by RBI. According to CAIT "What will happen after three months? How will the small traders of the country will survive?" These MSMEs may have problems receiving funds from the huge corporate houses which may cite reasons such as no sales. This is a cause of concern for MSMEs. These MSMEs may also have problems receiving funds from the government. Although the government has promised 45 days to send paym...