The Reserve Bank of India recently released the State of Economy Report for the month of April 2021.
Key Findings of the Report
- The resurgence of COVID-19 might bring back inflationary pressures.
- Also, the restrictions and disruptions in supply chains might add up to the inflationary pressures.
- Under the G-Sec Acquisition Programme, RBI aims to buy 1 trillion worth of bonds from the secondary market in June quarter.
Solutions to handle the issue
The Reserve Bank of India has provided the following solutions in its State of Economy Report to tackle the COVID-19 crisis in the country:
- Pandemic protocols
- To ramp up hospital and ancillary capacity
- Speedier Vaccination
- To remain focused on post pandemic future of strong and sustainable growth with financial stability
Current Pace of Vaccination in India
According to the report, India has set a vaccination target of 300 million by August 2021. This will require 3.5 million shots per day. It is 13% higher than the current pace noted. However, RBI expects that the vaccination pace will increase due to the improvised and accelerated strategy of third phase of Vaccination in the country.
Way Forward
The RBI is to conduct a survey in 21 states to learn about customer satisfaction in the recent bank mergers. The recent bank mergers are as follows:
- Dena Bank and Vijaya Bank was merged with Bank of Baroda
- Oriental Bank of Commerce and United Bank of India was merged with Punjab National Bank
- Syndicate Bank with Canara Bank
- Allahabad bank with Indian Bank
- Andhra Bank and Corporation Bank with Union Bank of India