MSMEs get the central banker’s special dispensation, says Sood
Without changing the benchmark Repo rates, the RBI Monetary Policy has brought in a slew of measures including a revolutionary decision to open the government securities (G-sec) market to retail investors, ASSOCHAM Secretary General Deepak Sood said on the recent decision by the central bank.
Despite some inflationary concerns seeping in, the RBI has stayed on course to maintaining “accommodative stance” on interest in the current financial year and the next fiscal, giving a comfort level to borrowers, according to Sood.
The MSME sector has been given a special dispensation, with the RBI giving leeway to the banks to lend more to the crucial sector of the economy, through easing of Cash Reserve Ratio (CRR) norms.
“The unwinding of the Covid-19 related forbearances is being done seamlessly in a least disruptive manner. That is a finesse, worth looking at and appreciating,” said Sood, adding that the RBI has also allayed concerns over the government’s large borrowing programme, crowding in the financial markets.
The RBI’s growth projection of 10.5% for FY ’22 is marginally lesser than the government estimating it at 11%. “We feel that the growth will surprise us on the upside by being much higher, driven by multiple areas.”
The RBI has recognized a pivotal role being played by the NBFCs and thus has been opening more space for accessing bank funding on lending. “This would be a demand booster,” he added.
The RBI has been ahead of the curve in the fast-evolving economic paradigm in the post pandemic world. “That is a rare distinction,” he said.
The RBI announced on 5 Feb 2021 that the repo rate will remain unchanged at 4%. #banking #loans #economy /fiinews.com
