The RBI expects the contraction in economic activity to prolong into the second quarter as the effects of the pandemic and lockdown drag on. The central bank's annual report says that the uptick in economic indicators which was visible in May and June appears to have lost strength in July and August due to the re-imposition of lockdowns, it has also added that the shock to consumption will take some time to mend.

To discuss the key highlights from RBI's FY20 annual report CNBC-TV18’s Latha Venkatesh is in conversation with Soumya Kanti Ghosh, Group CEA at SBI and A Prasanna, Chief Economist at I-Sec PD.