Categories: Business

Industry welcomes RBI policy announcement

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RBI policy review

new Delhi. Industry and experts on Thursday welcomed various announcements under the monetary policy of the Reserve Bank, especially the decision to allow restructuring of loans that are not recoverable by banks. The central bank on Thursday announced debt restructuring for companies on the demand of bank heads and industry. Industry body CII said in a statement that the industry is excited by the RBI's decision to implement the debt restructuring plan with prudence. Under this, banks are allowed to implement restructuring scheme, taking care of the loans given to companies. CII chairman Uday Kotak also said that RBI has already reduced the repo rate significantly, leading to increased cash. The decision to keep the repo rate at 4 percent can be understood in today's (Thursday) monetary policy review. Regarding monetary policy, FICCI President Sangeeta Reddy said that the Board of Industries welcomes the Reserve Bank's announcements regarding debt restructuring. The central bank worked on the restructuring and reconciliation framework in the monetary policy for MSME (micro, small and medium enterprises) loans for standard category (such loans which were coming in installments and which were not NPAs) till March 1, 2020. Announced the formation of a committee under the chairmanship of KV Kamath. Reddy said, "We have a very positive view of its details and execution."

Assocham Secretary General Deepak Sood said that the RBI has given a big relief by announcing a restructuring framework for the stressed lenders. Also, this will help banks. He said, "RBI has announced debt discipline by announcing the formation of a high committee to set rules on debt restructuring." He has made it clear through this that the determination of the financial criteria for eligibility will not depend on individual banks. "Sood also said that raising the loan limit against gold to 90 percent would provide relief to those families who have reduced income. Is struggling with cash problem. DK Aggarwal, president of the PHD Chamber of Commerce and Industry, praised the Reserve Bank's decision to maintain a soft stance given recent developments in the global market and domestic economy. Aggarwal said, "At this time, we would urge banks that the RBI has cut the repo rate by 1.15 percent in the last four months to provide relief to trade, industry and consumers and increase the demand in the economy." Give benefit to the customers. ”Textile Export Promotion Council (AEPC) Chairman A Sakthivel said that the extension of restructuring of the MSME loan is a timely decision as thousands of small and medium enterprises face severe financial crisis. Have been. This step of RBI will give them a big relief. Nikhil Gupta, an economist at Motilal Oswal Financial Services, described these RBI decisions as balanced, saying that it was clear that in this crisis of Kovid 19, the central bank wanted to help the lenders and borrowers. Gupta said that everyone will be waiting for the report of KV Kamath Sammit regarding small and medium units. Rumki Mandumdar, economist at Deloitte India, said that the RBI has shown a proactive approach, which is in line with our expectations.

This post was published on August 6, 2020 10:41 pm

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