In fact, no: the state of public finances was distinctly and persistently different across countries. So why was the different degree of fiscal solidity (or rather the lack thereof) not “priced in” in government bond prices? There are several reasons. Market participants may have been insufficiently forward-looking and too complacent.
There has been positive response on the part of banks with respect to this relief measure, especially on the use of loans to MSME as alternative compliance with the reserve requirements (RR). In fact, around 90 banks (mostly rural banks) have started using loans to MSMEs as an alternative mode of compliance with the RR.