Financial stability requires sustained regulatory vigilance and coordinated fiscal, monetary measures to address liquidity and solvency risks amid pandemic uncertainty.
The Council reviewed macroeconomic and financial stability risks from the COVID 19 pandemic, focusing on liquidity and solvency pressures in banks and non bank sectors, market volatility, capital flows and domestic resource mobilisation. It noted that recent fiscal and monetary measures have stabilised short term sentiment but emphasised continued regulatory vigilance and coordinated action to address liquidity and capital requirements and to prevent prolonged financial market dislocation.

Government securities auction protocol: multiple issues offered via price and yield auctions with competitive and non competitive bidding windows.
Announcement sets auction terms for multiple government securities using price based and yield based methods under a multiple price auction. Bids must be submitted electronically on the central banking system within prescribed competitive and non competitive windows. A limited portion of notified amounts is reserved for eligible participants under the Non Competitive Bidding Facility, the government may retain additional subscription up to a specified cap, results will be declared and successful bidders must make payment on the scheduled date, and the securities are eligible for When Issued trading per central guidelines.

Sovereign portfolio guarantee expanded to cover PSB purchases of NBFC/HFC/MFI bonds and CPs, easing liability-side funding stress.
The Cabinet expanded the Partial Credit Guarantee Scheme (PCGS) to provide a sovereign portfolio guarantee for PSB purchases of NBFC/HFC/MFI bonds and CPs rated AA and below (including specified short-maturity unrated paper), and relaxed pooled-asset eligibility by admitting certain SMA-1 NBFCs/HFCs, easing net-profit and asset-origination criteria, and extending the Scheme's operational window, with the guarantee facility time-limited by an aggregate cap and a fixed closing date.

Emergency Credit Line Guarantee Scheme provides full government-backed guarantee to lenders to spur additional credit to eligible MSMEs.
Introduction of Emergency Credit Line Guarantee Scheme providing 100% credit guarantee through the National Credit Guarantee Trustee Company to Member Lending Institutions for Guaranteed Emergency Credit Line funding to eligible MSME and interested MUDRA borrowers. Eligible MSME accounts meeting the prescribed credit and conduct thresholds as of the reference date may obtain additional term or working capital loans up to a capped proportion of outstanding credit; loans under GECL are fully guaranteed, carry a defined tenor with a principal moratorium, have waived guarantee fees, and are subject to capped interest rates. The Scheme applies within the announced implementation window or until the sanctioned aggregate is reached.

Government securities auction: re issues open for competitive and non competitive bids, with scheduled results and settlement.
Government announced re issues of several dated stocks and a floating rate bond to be auctioned by the Reserve Bank of India using the multiple price method, with notified amounts, an option to retain additional subscriptions, electronic bid submission via E Kuber, separate windows for non competitive and competitive bids, up to five percent allocation for eligible individuals and institutions under the Scheme for Non Competitive Bidding Facility, scheduled result and settlement dates, and eligibility for When Issued trading under RBI guidelines.

Government securities re-issue auction: price-based bidding via RBI with non-competitive allocation and when-issued trading eligibility.
Sale (re-issue) auctions announced for three Government securities with notified nominal amounts and an issuer option to retain additional subscription up to a prescribed cap. Auctions will be conducted by the Reserve Bank of India using the multiple price method and price-based bidding. Up to five percent of each notified amount is reserved for eligible participants under the Non-Competitive Bidding Facility. Competitive and non-competitive bids must be submitted electronically via the Reserve Bank's E-Kuber system within prescribed time windows on the auction date; results and payment are scheduled as announced. The re-issued stocks are eligible for When Issued trading under the Reserve Bank's guidelines.

Sovereign Gold Bond pricing: online applicants paying digitally receive a per gram discount during the specified subscription period.
The Sovereign Gold Bond Scheme 2020-21 Series II fixes the issue price by reference to the simple average closing price for 999 purity gold for the last three business days preceding the subscription period and opens subscriptions from May 11, 2020 to May 15, 2020. The Government, in consultation with the Reserve Bank, offers a per gram discount to investors who apply online and pay through digital mode, resulting in a discounted issue price for such applicants.

Issuance calendar for government securities updated; retail non competitive reservation and RBI flexibility including green shoe option permitted.
The document sets a revised weekly issuance calendar for marketable Government of India dated securities for H1 2020 21 with specified tenors and aggregate notified issuance. All auctions include a non competitive bidding facility reserving five percent for specified retail investors. The Reserve Bank of India, in consultation with the Government, may modify notified amounts, maturities and instrument types, use a green shoe option as indicated in auction notifications, and will conduct monthly switch auctions; auctions are subject to existing auction terms and conditions.

Government securities auction: issuance and re-issuance conducted by RBI with competitive and non-competitive bidding and allocation rules.
Sale and re-issue of specified Government securities will be conducted by the Reserve Bank of India using the multiple price method: price-based auctions for the re-issues and a yield-based auction for a new ten-year stock; the issuer may retain additional subscription up to a notified limit. Both competitive and non-competitive bids must be submitted electronically via the E-Kuber system within prescribed windows; up to five percent is reserved under the Non-Competitive Bidding Facility. Auction results and payment follow on scheduled dates, and the stocks are eligible for "When Issued" trading per RBI guidelines.

Monetary financing options remain under consideration, with RBI stressing balanced judgment to protect its balance sheet and stability.
RBI emphasises a cautious, balanced approach to monetary-fiscal coordination during COVID 19, keeping conventional and unconventional instruments on the table while preserving the central bank's balance sheet and macroeconomic stability. No final decision has been made on primary participation in government borrowing or private placement of long dated bonds; secondary market operations and liquidity tools (including a wider LAF corridor and lower reverse repo) will be used to incentivise credit flow. The RBI is intensifying supervision, mandating protective measures for banks, and advancing fintech regulation and a regulatory sandbox.