South Asia

Sum of Measures 1—5 (Total Package)

Total Package in USD Million: 376,389.24
% of GDP (2019): 13.38%
% of Regional Total Package: 96.05%
Package Per Capita in USD: 278.27
Note: Measures 9 and 10 are added to the sum of Measures 1-5.
Measure Amount (Local) Amount (USD) Details Update Source
01 - Liquidity Support info_outline INR11,819,366,747,737 USD159,041,603,107
01A - Short-term lending info_outline INR9,171,879,440,000 USD123,416,968,165

The Reserve Bank of India (RBI) has introduced (i) open market operations (over 0.1% of gross domestic product [GDP]); (ii) variable term repos (0.5% of GDP) to ease any domestic liquidity pressures; (iii) special refinance facilities for rural banks, housing finance companies, small enterprises (0.2% of GDP); (iv) a special liquidity facility for mutual funds (INR500 billion); (v) May 13, INR6 trillion worth of RBI liquidity injections into the banking system; (vi) No amount/estimate: extension of the of the small business refinancing facilities; (vii) Term repo operations for an aggregate amount of INR1 trillion at floating rates (i.e., at the prevailing repo rate) in the middle of September to assuage pressures on the market on account of advance tax outflows. In order to reduce the cost of funds, banks that had availed of funds under long-term repo operations (LTROs) may reduce their interest liability by returning funds taken at the repo rate prevailing at that time (5.15%) and availing funds at the current repo rate of 4%.

01B - Support policies for short-term lending info_outline INR2,446,090,420,000 USD32,914,634,941

(i) No amount/estimate: Cash reserve ratio (CRR) maintenance for all additional retail loans has been exempted and the priority sector classification for bank loans to nonbanking financial companies (NBFCs) has been extended for on-lending for FY 2020/21; (ii) The CRR was cut by 100 bps and the ceiling for marginal standing facility was increased to 3% of the Statutory Liquidity Ratio (together with Measure 2A, these comprise around INR3.7 trillion worth of liquidity); (iii) April 20, The RBI increased the limit for ways and means advances (a short-term liquidity facility for central and state governments) to 60% (for state) and INR2.0 trillion (for central governments); (iv) Temporary reduction of the Liquidity Coverage Ratio from 100% to 80%; (v) August 6, Introduced an optional facility allowing banks to manage their day end cash reserve ratio (CRR) balances. Banks will be able to set the amount (specific or range) that they wish to keep as balance in their current account with RBI at the end of the day.

01C - Forex operations info_outline INR201,396,887,737 USD2,710,000,000

The RBI conducted two sell–buy swap auctions to inject United States dollar liquidity into the forex market to a cumulative USD2.71 billion on March 16 and 23.

02 - Credit creation info_outline INR4,254,809,580,000 USD57,252,791,199
02A - Financial sector lending/funding info_outline INR1,254,809,580,000 USD16,884,739,382

(i) The RBI introduced long-term repo operations (0.4% of GDP for the first tranche and 0.2% of GDP for the second tranche; 1–3 years); (ii) August 6, Established special refinance facilities for a total amount of INR650 million for all India financial institutions (AIFIs); (iii) August 6, Extended INR250 million to the National Bank for Agriculture and Rural Development (NABARD) to back agricultural operations in the wake of challenges posed by COVID-19.

02B - Support policies for long-term lending info_outline

No amount/estimate: (i) RBI provided regulatory forbearance on asset classification of loans to micro, small, and medium enterprises (MSMEs) and real estate developers and introduced regulatory measures to promote credit flows to the retail sector and MSMEs. (ii) The Securities and Exchange Board of India temporarily relaxed the norms related to debt default on rated instrument and delayed the implementation of the net stable funding ratio and the last stage of the phased-in implementation of the capital conservation buffers by 6 months. (iii) The limit for foreign portfolio investment (FPI) in corporate bonds has been increased to 15% of outstanding stock for FY 2020/21 and restriction on nonresident investment in specified securities issued by the Central Government was removed. (iv) March 27, The RBI reduced the repo and reverse repo rates by 75 and 90 basis points (bps) to 4.4% and 4.0%, respectively. April 17-20: (v) the RBI reduced the reverse repo by 25 bps to 3.75%; (vi) announced a standstill on asset classifications during the 3-month loan moratorium period with 10% provisioning requirement and an extension of the time period for resolution timeline of large accounts under default by 90 days; (vii) Restriction on banks from making dividend payouts; (viii) May 22, the RBI reduced the repo and reverse repo rates further by 40 bps each to 4.0% and 3.35% respectively, and reduced the marginal standing facility and bank rates from 4.65% to 4.25%; No amount/estimate: (ix) May 22, Authorities have also increased the large exposure limit from 25% to 30% of bank capital. Under the extant guidelines on the Large Exposures Framework, the exposure of a bank to a group of connected counterparties shall not be higher than 25% of the bank’s eligible capital base at all times; (x) June 21, the RBI directed banks to assign zero % risk weight on the credit facilities extended under the emergency credit line guarantee scheme; (xi) August 6, the RBI permitted banks to restructure existing loans to MSMEs classified as "standard” as of March 1, 2020 without a downgrade in the asset classification. Banks are required to maintain additional provision of 5% over and above the provision already held by them for accounts restructured; (xii) August 6, the RBI also permitted lenders to implement a resolution plan in respect of eligible corporate exposures as well as personal loans, keeping the ownership unchanged, and without classifying them as non-performing loans. 10% provisioning is required; (xiii) Extant limit for investments that can be held in HTM category is 25% of total investment. Banks are allowed to exceed this limit provided the excess is invested in SLR securities within an overall limit of 19.5% of NDTL only. On August 31, banks were allowed to hold fresh acquisitions of SLR securities acquired from September 1, 2020 under held-to-maturity up to an overall limit of 22% through March 31, 2021. [update]

02C - Loan guarantees INR3,000,000,000,000 USD40,368,051,817

May 13, INR3 trillion worth of loan guarantees for small and medium-sized companies.

03 - Direct long-term lending info_outline
03A - Long-term lending info_outline
03B - Forbearance

No amount/estimate: (i) The RBI provided relief to both borrowers and lenders, allowing companies a 3-month moratorium on loan repayments. This moratorium was extended to end August; (ii) Provided subsidies to banks to reduce interest rates for short-term loans to farmers. On June 4, decided to continue the availability of 2% Interest Subvention (IS) and 3% Prompt Repayment Incentive (PRI) to farmers for the extended period of repayment up to August 31, 2020 or date of repayment, whichever is earlier, to prevent increases in interest rate during the extended moratorium period; (iii) June 24, Approved a scheme for interest subvention of 2% for a period of 12 months to all Shishu loan accounts under the Pradhan Mantri Mudra Yojana (PMMY). This scheme will only apply to certain loans that meet the criteria (e.g. outstanding as of 31 March 2020, not in Non-Performing Asset category).

04 - Equity support info_outline
05 - Government support to income/revenue INR11,838,186,220,000 USD159,294,838,251

(i) Three measures have already been announced as direct support to income/revenue. The first, mainly devoted to health, totalled around INR150 billion. The second, focusing on nonhealth initiatives, totalled around INR2 trillion. Finally, on May 13, USD112.5 billion in fiscal support was announced, which is part of the USD266 billion support package announced by Prime Minister Modi. Part of this will go towards new measures targeting businesses and expanding support for poor households. The complete breakdown is yet to be disclosed; (ii) May 17, an additional INR400 billion was allocated to provide employment boost; (iii) No amount/estimate: Other key measures announced include: (a) health reforms & initiatives by investing in health institutions, among others and (b) a program for digital education to be launched immediately; (iv) June 23, the Prime Minister CARES Trust Fund has allocated INR3 billion for both health and nonhealth initiatives; (v) June 12, the GST council announced that it would halve the interest rate charged on overdue filings of small businesses. On June 30, Prime Minister Modi announced that the provision of food rations to vulnerable households would be extended through end-November (0.4 percent of GDP).

05A - Health

Prime Minister Modi announced that an additional INR150 billion will be devoted to health infrastructure, including for COVID-19 testing facilities, personal protective equipment, isolation beds, intensive care unit (ICU) beds, and ventilators; (ii) No amount/estimate: Reduction and/or eliminations of tariffs for imports of medical or surgical instruments and supplies along with eemptions fom "health cess"; (iii) June 23, Allocated from the Prime Minister CARES Trust fund INR2 billion for supply of 50000 ‘Made-in-India’ ventilators to government-run COVID19 hospitals.

05B - Non-health

(i) March 26, Finance Minister Sitharaman announced a stimulus package valued at approximately 0.8% of GDP. The key elements of the package are (a) in-kind (food, cooking gas) and cash transfers to lower-income households; (b) insurance coverage for workers in the health-care sector; and (c) wage support to low-wage workers (in some cases for those still working, and in other cases by easing the criteria for receiving benefits in the event of job loss); (ii) No amount/estimate: Several measures to ease the tax compliance burden across a range of sectors have also been announced, including postponing some tax filing and other compliance deadlines; (iii) Numerous state governments have also announced measures to support the health and well-being of lower-income households, primarily in the form of direct transfers (free food rations and cash transfers)-the magnitude of these measures varies by state, but on aggregate measures thus far amount to approximately 0.2% of India’s GDP; (iv) May 17, an additional INR400 billion was allocated to provide employment boost; (v) No amount/estimate: May 20, approved the extension of Pradhan MantriVayaVandanaYojana, a social security scheme for senior citizens, for three additional years until March 2023; (vi) June 12, Provided waiver of late fees and interest as well as reduced the 18% per annum rate to 9% per annum for late furnishing of tax returns for small tax payers; (vii) June 23, a sum of INR1 billion has been allocated from the PM Cares Trust Fund for the welfare of migrant laborers; (viii) June 30, Prime Minister Modi announced that the provision of food rations to vulnerable households would be extended through end-November (0.4% of GDP).

06 - Budget reallocation info_outline
07 - Central bank financing government INR400,000,000,000 USD5,382,406,909
07A - Direct lending & reserve drawdown

April 20, The RBI increased the limit for ways and means advances for the Central Government (a short-term liquidity facility) for the remaining part of the first half of the FY 2020/21 from INR 1.2 trillion to INR2.0 trillion. The WMA is a temporary liquidity facility offered by the RBI to the government that acts as a credit line that the government may call upon to help them reconcile short-term mismatches in cash flows of their receipts and expenditures.

07B - Secondary purchase: government securities INR400,000,000,000 USD5,382,406,909

(i) April 27, INR100 billion purchase of government securities under Open Market Operations (OMO); (ii) June 29, another INR100 billion purchase of government securities under Open Market Operations (OMO). These two operations, totalling INR200 billion, have long-term maturities ranging from 6 years to 10 years and are meant to replace the concurrent sale of short-term government securities maturing within the next year; (iii) August 26, Decided to again conduct simultaneous purchase and sale of government securities under Open Market Operation (OMO) for an aggregate amount of INR200 billion in two tranches of INR100 billion each. The auctions would be conducted on August 27, 2020 and September 03, 2020.

08 - International Assistance Received INR420,229,097,921 USD5,654,610,000
08A - Swaps info_outline
08B - International loans/grants INR420,229,097,921 USD5,654,610,000
08B1 - Asian Development Bank INR122,377,221,035 USD1,646,710,000

(i) April 7, USD0.07 million as a technical assistance under the Regional Project Development Support for the South Asia Subregional Economic Cooperation Operational Plan, 2016–2025; (ii) April 22, USD1 million under the Strengthening Capacity of the National Urban Health Mission (Supplementary); (iii) April 28, USD2 million under the Building Capacity for Improved Implementation of Government’s COVID-19 Response and Pro-Poor Economic Package; (iv) April 28, USD1.5 billion under the COVID-19 Active Response and Expenditure Support Program; (v) USD3 million under the TA 9950: Regional Support to Address the Outbreak of COVID-19; (vi) May 14, USD0.2 million funding from the ADB and the Republic of Korea e-Asia and Knowledge Partnership Fund under the following project: Strengthening Universal Health Coverage in India: Supporting the Implementation of Pradhan Mantri Jan Arogya Yojan; (vii) May 20, USD0.12 million as support to address the outbreak of the Coronavirus disease, and to strengthen the health systems preparedness for South Asia; (viii) May 20, USD12.53 million guarantee from the ADB as part of the Microfinance Risk Participation and Guarantee Program, with another USD12.53 million cofinanced by other institutions. As of June 17, this amount has been increased to USD21.83 million each. As of July 4, this amount was again increased to a total of USD23.81 million each. Further, as of August 14, this amount increased to a total of USD29.82 million each; (ix) June 9, additional USD15 million loan to India for sustaining poultry farmer income and food security; (x) June 29, USD2.5 million under the Regional Program, Planning for Economic Recovery of South Asia from COVID-19; (xi) July 23, USD3 million funding under the COVID-19 Emergency Response; (xii) July 29, USD50 million loan under the ReNew Power COVID-19 Liquidity Support Project; (xiii) August 6, USD20 million Debt Financing to Global Health Private Limited for the COVID-19 Hospital Service Delivery Project; (xiv) August 10, USD20 million Debt Financing to Apollo Hospitals Enterprise Limited for the COVID-19 Hospital Capital Support Project.

08B2 - Other INR297,851,876,886 USD4,007,900,000

(i) April 2, USD1 billion in funding from the World Bank group dedicated towards the country's national health system; (ii) May 8, USD500 million in funding from the Asian Infrastructure and Investment Bank to support India's efforts against the COVID-19 pandemic, mainly by strengthening the country's national health system; (iii) May 14, USD1 billion in support from the World Bank to protect India's poorest sectors from the impacts of COVID-19; (iv) May 20, USD2 million in support from the United Nations Development Group from the UN COVID-19 Response & Recover fund; (v) USD5.9 million in health assistance to help slow down the spread of the pandemic, from the U.S. Agency for International Development (USAID); (vi) June 17, Asian Infrastructure Investment Bank (AIIB) has approved a USD750 million loan to India to assist the government to strengthen its response to the adverse impacts of the COVID-19 pandemic on millions of poor and vulnerable households; this is co-financed with the Asian Development Bank; (vii) June 30, USD750 million Micro, Small, and Medium Enterprises Response Program form the World Bank to support increased flow of finance into the hands of MSMEs severely impacted by the COVID-19 crisis.

09 - International Assistance Provided INR59,452,955,789 USD800,000,000
09A - Swaps info_outline INR59,452,955,789 USD800,000,000

(i) April 15, A request was made by Sri Lanka to enter into a Bilateral Currency Swap Agreement with the Reserve Bank of India for USD400 million. As of July 25, the Reserve Bank of India (RBI) has signed the documents formally extending the facility to Sri Lanka; (ii) April, RBI entered into a swap currency agreement with the facility with the Maldives Monetary Authority amounting to USD150 million. On September 1, The duration of the currency swap agreement signed between Maldives and India was extended. Presently, Maldives has already received USD150 million under this agreement. In addition, MMA revealed that the Government of India would grant further financing up to USD250 million. As of September 20, the remaining USD250 million financial assistance has been provided by India to the Maldives. [update]

09B - International loans/grants
10 - No breakdown
11 - Other Economic Measures INR382,500,000,000 USD5,146,926,607

No amount/estimate: (i) Amendments introduced to the export policy of several products; (ii) May 17, Enhancements to the Ease of Doing Business Act and decriminalisation of Companies Act violations; (iii) July 7, Decided to partially modify circular No. SEBI/HO/DDHS/CIR/P/2020/41 (dealing with investor grievance report, financial results and accounts maintained by issuers under ILDM Regulations) and extended the timelines for submission to July 31, 2020; (iv) July 15, Decided to permit Listers who listed or intend/propose to list NCDs/NCRPS/CPs to use available financials as of December 31,2019, pre-coronavirus; (v) August 31, Announced that various State Governments have offered to sell securities by way of an auction, for an aggregate face value of INR82.5 billion; (vi) August 7, The Reserve Bank announced the constitution of an Expert Committee under the chairmanship of Shri K.V. Kamath to make recommendations on the required financial parameters to be factored in the resolution plans under the ˜Resolution Framework for Covid19-related Stress; [update] (vii) August 31, Announced the re-issue of various fixed-rate government equities (stocks) at different years and percentages, for a total of INR300 billion through price-based action;

12 - Non-Economic Measures

(i) March 21, A temporary ban for a week on international flights landing in the country for a week; (ii) March 26, Extended ban on all international flights till April 15th, excluding approved all-cargo operations and flights; (iii) March 5, Schools closed in some of the municipalities and states, including Delhi until the end of March, which was eventually expanded to all educational insttitutions in the country; (iv) March 12, Partial shutdowns was imposed on educational institutions, stadiums, cinema halls, and sports clubs and gathering of people were banned in some of the states, including Delhi; (v) March 24, The entire country was placed under lockdown for 21 days which, on April 14, was further extended to May 17; (vi) April 15, the government announced several relaxation measures in geographical areas designated as non-hotspot, with effect from April 20, 2020; (vii) May 30, the government issued ‘Unlock 3.0’ guidelines for a phased re-opening of most activities across the country and limiting the lockdown only to containment zones for a month until June 30. However, states have been empowered to prohibit certain activities if they deem it necessary; (viii) On August 29, the government issued new guidelines (‘Unlock 4.0’) to further re-open the economy in September, removing restrictions on metro rail, and allowing for social, academic, sports, entertainment, and other congregations of up to 100 people. Education institutions will remain closed until end-September, with lockdowns continuing to be implemented in containment zones. [update]