Corona’s second wave has proved to be a major setback for demand: RBI

Corona's second wave has proved to be a major setback for demand: RBI

New Delhi: The Reserve Bank of India (RBI) said on Monday that the second wave of Corona has caused a huge reduction in demand. The RBI said in its monthly bulletin that the economic activity in the first quarter of the current financial year “did not decrease much but caused a loss” as Corona’s cases rebounded.

RBI said that the second wave of Corona has created problems for India and the world. Attempts are being made on a war footing to prevent Corona cases.

According to the bulletin, “Economic indicators have weakened in April and May. The second wave of Corona has had the most impact on demand. Along with this, there has been a decrease in mobility, spending and employment while inventory has accumulated. However, its supply But less impact. “

The RBI says the economic activity has slowed down but the impact of the second wave of Corona is less of a loss compared to the same period last year.

The bulletin states that the business of non-banking financial companies (NBFCs) has suffered a lot due to the blocking of economic activity due to Corona.

The RBI said that the government has taken measures to increase liquidity to deal with the difficulties faced by Corona. This is indicated by an increase in the debenture issue.

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