The world is passing through unprecedented times, and we need to unite once again to fight against the COVID-19 with a different approach. This approach will be social distancing and keeping ourselves safe from catching the virus, wash hands and stay at home.
This virus is so small that it can’t be seen from the human eyes but devastating millions of lives of people and destroying economies in monetary and financial terms. Most of the countries and states are in lockdown state, businesses are closed, peoples are home quarantined, and markets are crashing. One of the toughest time for the world.
To fight against this deadly virus and adverse effects created by it, many governments worldwide took various initiatives, they have put an economic package for the business owners and financial support to the affected ones.
Similarly in India, Government and RBI have also announced such packages to the east out the life of peoples at this crucial time of this Pandemic. These initiatives can be divided into two broad categories, i.e., is Non-Financial and Financial initiatives by the Government.
Non-Financial Initiatives by the Government:
- Advisory on Covid-19, spreading awareness about the disease, its effect, and how to take precautionary measures to safeguard ourselves. Arogyasetu App launched.
- Recording live cases and connecting the links to know the exact chain and break it.
- Screening at all airports and identifying people affected of it.
- The building of hospitals, isolation and quarantine centres is one of them.
- Initial Janta Curfew to the 21 days of lockdown.
- All Businesses are closed except the essential services like Hospital, Banks, Insurance, Petrol Pumps, Medical stores, Groceries and Food Sores, Dairy and Milk Booth, CNG stations, LPG, Print and Electronic Media, IT, Telecom and Internet Services, Stock Market, Cold Storage, Security Services.
- People are working from home.
- Public transportation is closed.
- The social or public gathering is prohibited and restricted. People are not allowed to go out.
Financial Initiatives by the Government:
- RBI Monetary Policy announcement for creating Money liquidity in the market.
- Relaxation for inadequate loan guidelines for classification of non-performing assets (NPA), the delinquency period is raised from 90 to 180 days.
- Three months moratorium for term loans, working capital, cash credit, overdraft and other loans repayment etc. are allowed to be deferred.
- Three months moratorium on EMI payments on all loans such as Housing, Auto, Personal, LAP etc.
- There would be no penalty for taking benefit EMI or Loan prepayment moratorium. Still, there would be an extra cost of interest to be charged by lenders which will increase the repayment period be few additional EMI’s or repayment months.
- This moratorium benefit can also be availed on credit card dues, there would not be any penalty on card payment, but interest for the tenor would be charged.
- RBI extended realization period for exports of goods and services from 9 months to 15 months from the date of commodities, and this extended period will give them flexibility for realization period and help them to negotiate future export contracts with buyers abroad.
- The financial year 2019-20 is extended to 30th June 2020. Tax filing can be done this date.
- Deferring Tax liability or delay of TDS will not have any penalties but will attract the interest of 9%, which is reduced from 12% and 18% respectively.
- GST returns can be filed for March, April and May till 30th June 2020 without any interest or late fee for companies with T/o less than INR 5 Cr.
Government, Ministry of Finance and Reserve Bank of India have taken various measures and initiatives for the encouragement of distribution of money to the needy ones. Additionally, regulatory policies are eased out to create liquidity in the market. These measures and initiatives are quite adequate to handle the crisis. In case of further needs, the Government may take additional steps to handle the situation. In conclusion, these initiatives and policies are amended to provide financial assistance and relief to everyone affected due to the COVOD-19 Corona Virus affect.