The Covid-19 outbreak has seen the worst liquidity crisis, with unstable cash flows and low reserves and also with restrictions to seek additional debt has also brought immense pressure on business. Considering the gravity of the situation, RBI had already announced a series of measures to revive the ailing economy stuck by the financial effects of the pandemic as follows:1) Firstly long term repos operations (TLTRO) of Rs.50,000 crore was announced targeted at the NBFC sector.2) Secondly the reverse repo was reduced in order to encourage banks to deploy these funds for lending purposes, the RBI reduced reverse repo from 4% to 3.75%.3) The third step was the RBI’s measure meant for the states to avail short-term funds up to 60 per cent of the existing limit to fight the deadly disease.4) And finally the Liquidity Coverage Ratio has been brought down to 80 percent from 100 per cent earlier. This will be restored in phases by April 2021.Although economic growth looks slump for now, there is huge potential in biotechnology, health infrastructure. pharmaceutical and sustainable growth and living which will help in rebooting the economy. However the GDP growth for the year, according Goldman Sachs, is likely to shrink by 5% in FY 2020 – 21.

As per RBI regulations, banks and NBFCs disbursing Gold Loans have a maximum limit of 75% Loan to Value for the gold Jewellery pledged. Muthoot Fincorp Ltd. has recently introduced Super Value Gold Loan to help customers get maximum value for their gold. To help small businesses in need, Muthoot Fincorp has also started a new product - Ashwas Dinam Gold Loan with 180 days of steady interest rate. These initiatives are helpful to meet the financial needs of customers.

As of now, there has been no interest reduction decision/announcement by the Government/RBI/any other statutory organisation. Since, such decisions are controlled by the RBI, the solution for the same has to come from them. The RBI had however, announced a "moratorium period", to ensure that the businesses can avail the same and have more time to pay off their outstanding dues. For knowing more about the moratorium period, you can contact your bank or NBFC regarding the same. The RBI has however, increased funding for the banks and the NBFCs to enable them to lend to the small and medium businesses; which will lead to cash flow into the economy and take care of the cash crunch being faced by such businesses in the current pandemic situation. Thus even though there is no direct interest reduction, there are many measures taken by the Government and RBI and many new class of products introduced by various Financial Institutions to help the small and medium businessmen and women.

"At the very starting stage of a business, it is advisable to keep loans and other liabilities to a minimum. If you can ‘prove’ your business for the first 3-6 months without a loan (or by availing small loans from family members), it could be the best for you. In short: avail a loan to expand your business; not to experiment your idea. To apply for a business-loan anywhere, you need to have your business idea drafted on paper. Such a document is called a ‘business plan’. In this plan, you need to clearly mention what business you intend to do (what product or service you intend to sell), who your customers are, how you intend to make money out of your business, and by when. This Business Plan will not only help visualize and explain your idea to others better; it will also help the Bank or Micro-finance company or Investor make a sound assessment of your idea and offer you the loan with confidence. "

"The lockdown has impacted different types of businesses in different ways. Having said that, if we are to draw a single common strategy that should be in the minds of all businesses alike, it would be-- ‘to go digital’. Let’s look at it this way-- the very purpose of lockdown is to distance people from each other. In a world where physical distance between people is made mandatory, adopting technology into business becomes a necessity. When we say ‘technology’, it could be anything simple. From exploring ways to reach out to your customers via Whatsapp, to using Google Forms to send quick surveys to understand your customers, there are plenty of simple, free, and effective ways to get your business starting on the technology journey. As a must, please ensure that you are able to receive payments from your customers via digital wallets like GooglePay, PayTM etc."

Recessions or economic downturns are a part of life and a natural economic cycle. Though it is unprecedented, it doesn’t mean that the market won’t make a recovery. Many financial institutions / NBFCs are gradually taking numerous measures to provide unsecured loan schemes to help customers. No additional security is required for such schemes / customers. Financial institutions/ NBFCs provide unsecured loans based on the borrower’s creditworthiness and previous repayment cycles. As a result, they come with higher interest rates and require higher credit scores. They will analyse the situation and subject to your eligibility, disburse unsecured loans.

The major focus of our campaign is to help our website visitors gain information, knowledge and help in the time of pandemic, where a lot of confusion is present among the general public. Through this campaign, we aim to help people empower themselves with information regarding the various aids, help and support which is available to them from various avenues.

The government has extended ITR filing deadline for FY 2019-20 to November 30, 2020. The extension has come after the government, in March, extended various income tax-related deadlines for individuals to June 30, 2020 via an ordinance dated March 31, 2020. The decision of extension of deadlines to file ITR for the FY 2019-2020 has been taken in view of the ongoing COVID-19 pandemic. The Income Tax department has also allowed assesses to claim deductions in capital gains arising out of investments, construction and purchases made till 30 September 2020.

"Withdrawal of lockdown is currently happening in a phased manner and companies should prepare for restarting their operations with a careful process in place. A recent Economic Times article dated May 07, 2020 states that the following areas should be looked into to restart operations in an proactive and efficient manner. There are five key issues for Indian manufacturers to deal with, before they begin operations: Safety: Management teams at manufacturing plants need to draw up a comprehensive plan to ensure on-site safety of the workforce. The first task will be to source ample supplies of cleaning material—disinfectants, liquid hand soaps, sanitizers, and Personal Protective Equipment (PPEs) like masks, gloves, hair nets, etc., while undertaking ‘deep sanitisation’ of the entire plant. Additionally, a sanitising tent or tunnel can also be considered. Screening: A screening mechanism for employees and visitors needs to be implemented—various online tools are available for this. In addition to daily screening, a database consisting medical records of employees and their families, tracking their current medical condition and any existing illnesses or diseases can also be maintained. Most importantly, a granular plan for social distancing at work needs to be created via staggered rosters of shifts, alternate lunch/meal times, shop floor recalibration (including demarcated working/movement areas) and constant monitoring. Logistics: While availability of trucks and overall logistical support is gradually improving, there are still areas in the country where availability of such resources is only 20-30 percent, compared to pre-Covid-19 days. In anticipation of such scenarios, companies are advised to expand their vendor base swiftly. Digital platforms which offer aggregator-like services should be considered and included as early as possible. Raw materials: While some companies are able to restart their plants, it is critical to undertake a value chain assessment to understand raw material status and availability of packing materials. People Engagement: People will continue to be the center of response to Covid-19. It is imperative for both plant and corporate senior management to engage regularly with their employees through video-conferencing to get feedback and suggestions. Also with an understanding that plants can only operate with limited manpower, human resource policies around compensation for late shifts, remuneration to support families requiring child care, etc. are impertaive"

Keeping the expenses low is the key for any time and especially during these tough times. Tax saving, long term NPS, Tax Save,r long term Fixed Deposits are relatively risk free and help park the money into safe hands for longer duration and they can also save some extra money on taxes every year for Short term keeping liquidity in mind for emergencies. Short duration Fixed Deposits, Flexible Recurring deposits, Treasury Securities, Post Office Time Deposits etc are relatively risk free. It is better to avoid stock market/Mutual funds if one is unwilling to take a risk in this highly volatile situation in the market.