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As Indians live through a complete lockdown in the wake of the coronavirus pandemic, economic activity has come a grinding halt. In order to alleviate the effects of the lockdown on businesses and small and medium-size enterprises which form the backbone of the Indian economy, RBI Governor Shaktikanta Das announced measures to ensure increased liquidity in the market. From moratorium on loans, to reducing the repo rate for banks, Das attempted to calm the nervous market sentiment by ensuring that consumption does not stop.
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