In a yet another unscheduled off-cycle monetary policy meeting (well ahead of the scheduled meeting in early June), the RBI Governor made some important policy and operational announcements. This Policy was formulated in the context of testing domestic and global conditions. These conditions are starkly reflected in a complete collapse of the global economic activity post the COVID 19 new normal of ubiquitous lockdowns and social distancing. There has been an economic deceleration in the key advanced economies (AEs), viz., the US, Euro area, Japan and the UK in Q1:2020. In the case of the emerging market economies (EMEs), the Chinese economy went into a pronounced decline and high frequency data indicators are suggestive of a shrinkage in Brazil and South Africa. In sum, Covid 19 has crippled the global economy and activities across the world have stalled.