Looking at current situation of #CoVidFinancialCrisis dragging FinancialSector across NBFC-MFIs having substantial exposure in Consumption,Retail&PrioritySectorLending with MFs&other SmallPrivateBanks too are facing CreditRisk,its time GoI intervene.1
@RBI https://www.moneycontrol.com/news/business/coronavirus-impact-mfis-sitting-on-a-ticking-time-bomb-loan-defaults-likely-to-spiral-5150841.html

As Banks which provided UnsecuredLoans to SFBs,MFIs,NBFCs,StateCooperatives etc which also happens to include SmallPrivateLenders such as @YESBANK diversifying into the LowIncome&risk mitigating Sectors which directly concerns with Employment generation,it needs StateProtection.2

1.Need to provide Credit Security: As @RBI has already cut the benchmark rates by further 75bps coupled with nod to GoI for Market borrowing on 50bps leeway on #FRBM integrity,the widening Gross NPA on erosion of Net ICR in broadly distributed Loans needs to be covered.3

For this,Banks can be provided with special funds by GoI on CAD accruel citing gross savings on account of fuel import bill so that they can allow moratorium to NBFC-MFIs on mandate to Secure PSL&protect the interest of small borrowers to be extended as an emergency package.4

The funds so transferred out of Liquidity on Sovereign Debt Security at prevailing Currency advantage must be extended alongwith incentives cum relief to the Sectors of advances where by small Businesses,Retail or CommercialActivities working on MicroFinance can be incentivised.5

For Eg:Rurban Commercial Activities such as Tailoring,Retail,Small Industrial Works like Workshops etc alongwith Cooperative Economic Activities such as Dairy,Horticulture,SSIs etc can be protected under Cooperative Sector Policy in spirit of Art-43B mandate to empower them.6

This means,while Moratorium period extended on behalf of NBFC&MFIs is in works,these Commercial&Economic Activities currently slowed down on account of #CovidLockdown shud be protected under Priority Sector Status thru Policy intervention regarding Market Cost&Tax Productivity.7

Respective StateGovts can protect all PSL advances thru NBFC-MFIs by levying Kisan Kalyan&Swacchta Cess on GST over similar branded Goods&organised Services in Retail&Commercial space which are currently allowed to remain operational such as e-Grocers.8
@nsitharaman @NITIAayog

The extra GST Cess accrual can be set aside as ICR reimbursement by States to later declare PSL advances interest free,invoking Art-19(i) Fundamental Right of Cooperatives in spirit of DPSP Art-43B objective to support them that mandates this Socialist Policy intervention.9

An ordinance can be promulgated to declare all key Commercial&Economic PSL advances interest free so as to give legal protection to this policy intervention.Hence,Credit Protection on surplus Liquidity from Central funds&Protection by States can bailout stressed Sector.10
@RBI

2. Market Intervention: Due to slump in Global Economy&Capital glut back home, @FinMinIndia can empower @SEBI_India & @RBI to give partial relief to Corporate borrowers on same lines as PSL where STT,STCG exemptions can be extended to MFs&Banks facing Credit risk on Moratorium.11

@RBI shud put an embargo on panic deposit withdrawal from Small Private Banks by imposing Withdrawal or Funds Transfer limit inbetn Rs.25k to Rs.50k with 1 PSB&1 well Capitalized Private Bank only shud be allowed to do it on Withdrawal charge of 1% at Parent Banks Window.12

This will plug further chaos in BFSI Sector&will ensure stability.The listed Companies facing lost of manhours&HR cost overrun can be allowed to float Market instruments on relevant exemptions such as STT,CGT,TDS etc as a trade off incentive for not laying off HR.13
@nsitharaman

This means,Companies can forgo their TDS obligations in exchange of ESOPs premium for which CBDT can issue circular on @FinMinIndia approval.This will ensure continuous operational HR cost gets balanced indirectly on Tax relief to help productive Companies work on HRMarginCost.14

Moratorium on EMIs for 3 Months which is also creating a longterm burden on borrowers can be balanced by providing individual IT relief on EMIs accounting their EMI outgo in their new IT slabs which was announced by FM @nsitharaman in this Budget.15

This way Protection&Productivity of Debt&Tax accrual can be pooled into the System as Liquidity in Public-Private Partnership which can unleash Real Productive Output of assets on Cash productivity against overweighted Risk Assets which can be hence used as Secondary Debt.16
@RBI