India's success in advancing on Covid-19 vaccine front will eventually soften the severity of the pandemic within the region, a report by Moody's said

RBI last week asked the bank to temporarily stop all launches under its digital 2.0 initiative and stop sourcing new credit card customers.

Moody's projected India's economic growth for 2020-21 fiscal at 0 per cent, lower than 4.8 per cent estimated in 2019-20.

Moody's said India is likely to see a sharp fall in incomes at the estimated 2.5 per cent growth rate

Stating that there was significant economic fallout from more rapid and wider spread of the coronavirus, Moody's on Tuesday said dampening of domestic consumption demand in affected countries exacerbates disruptions to supply chains and cross-border trade of goods and services.

Moody's said India's economy has decelerated rapidly over the last two years and expects economic recovery to begin in the current quarter.

The credit rating agency has lowered the earlier 5.8 per cent growth forecast, saying the GDP slowdown is lasting longer than expected.

The rating agency lowered India's outlook from 'stable' to 'negative', saying there were increasing risks of economic growth remaining materially lower than the past.

Moody's decision to change the outlook to negative reflects increasing risks that economic growth will remain materially lower than in the past

The Indian rupee has depreciated 13 per cent so far in 2018 and has touched a historic low of Rs 72.32 to a dollar.