Ila Patnaik in her editorial "keep the Money Moving" in Indian Express has pointed out on 7 steps which RBI needs to take to ensure enough liquidity in the economy during these distressed times :
1) Make sure that the cost of credit remains low by reducing repo and reverse repo rates and opening credit lines with Fed, Exim Banks, multilateral agencies for dollar liquidity for Indian firms.
2) RBI should be alot more transparent on its weekly Forex reserve data which gets affected by both revaluation and intervention ( RBI buying and selling in market). This will keep confidence in the market
3) Open credit channels - Bond market is the need of the hour to provide short term credit to large firms. Absence of well developed bond market is hurting Indian corporates badly.
4) India should be careful about the infrastructure expension plans. Certain infra plans like delhi- mumbai freight corridor needs to be taken forward much swiftly.
5) Bankruptcy codes need improvement. few firms will go down, government should not try to protect them infact disciplined codes need to maintained
6) Watch banks continuously-- A special focus is required on the transmission of firm failure into banks fragility.
7) Do not tinker with market prices
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