India used digital transfers to prevent spread of COVID-19: FM tells G20 leaders

While sharing the Indian experience in tackling the COVID-19 outbreak, Nirmala Sitharaman told G20 leaders that the transfers were made to 320 million people with a special focus on direct benefit of transfer through digital technology so that the exposure of beneficiaries to public places is minimised.

New Delhi: The country has transferred over $3.9 billion to 32 crore beneficiaries through digital mode to avoid their exposure to public places, finance minister Nirmala Sitharam told her G20 counterparts in a virtual meeting.

Social distancing is considered crucial in slowing down the spread of the highly contagious novel coronavirus that has killed nearly 400 people in the country and over 1.3 lakh people worldwide.

“Within a couple of weeks, India has disbursed financial assistance amounting to USD 3.9 billion to more than 320 million people,” Nirmala Sitharaman told her G20 counterparts in a virtual meeting.

In her intervention, in the meeting of G20 finance minister and governors central banks, she said the government took timely and swift actions to protect the vulnerable sections with targeted assistance.

While sharing the Indian experience in tackling the COVID-19 outbreak, Nirmala Sitharaman told G20 leaders that the transfers were made to 320 million people with a special focus on direct benefit of transfer through digital technology so that the exposure of beneficiaries to public places is minimised.

Under the PM Garib Kalyan Scheme, which is aimed at providing basic food, fuel and some disposable cash to nearly two-third of the country’s population, the government last week completed transfer of nearly Rs 30,000 crores to 31.77 crore bank accounts.The government has arranged a total outlay of Rs 1.7 lakh crore under the scheme.

Liquidity support of $50 billion

Finance minister Nirmala Sitharaman said the role of finance ministers and central bank governors was crucial in safeguarding the lives and livelihood of people while maintaining macroeconomic stability in a sustainable manner.

Nirmala Sitharman said the policy measures initiated by the Union Government and Reserve Bank of India and other regulators have resulted in de-freezing the market and catalysing the credit flows in the economy.

She said these measures include liquidity support of $50 billion.

In its monetary policy committee meeting held late last month, the Reserve Bank had cut the benchmark interest rate at which the banks borrow money from the Central Bank, by 75 basis points.

The RBI also reduced the amount of money that banks are required to set aside or keep as a reserve to improve the liquidity situation in the economy.

While sharing the country’s economic response to the COVID-19 outbreak, Nirmala Sitharaman said the measures announced by the government include extension of deadlines for regulatory compliance, relief on debt servicing by way moratorium on EMI payment on term loans and relief to businesses on their working capital requirement.

Nirmala Sitharaman also appreciated the Action Plan prepared by G-20 countries to deal with outbreak of coronavirus pandemic.

The plan includes measures to protect lives, safeguard people’s jobs and incomes, restore confidence, preserve financial stability and revive growth.

The Action Plan also includes measures to help least developed countries by providing them special assistance and minimising the disruptions in the global supply chain.

She said the Action Plan prepared by G20 leaders will also help in dealing with any similar crisis in future.

(Article by Krishnanand Tripathi)