Business
ICC’S TAKE ON BI-MONTHLY MONETARY POLICY REVIEW OF RBI
At bi-monthly monetary policy review today, RBI has projected India’s GDP growth at 9.5 per cent for the ongoing Financial Year of 2021-2022.
Indian Chamber of Commerce (ICC) highly appreciates Apex Bank’s decision to step up its efforts to ensure liquidity in the system with another G-SAP worth Rs. 1.2 lakh crore planned for this fiscal year.
In addition to that, RBI has kept the repo rate unchanged at 4 per cent. Which, ICC feels shall further help home buyers. As prevailing low home loan rates are already enticing for homebuyers, with inflation set to be high and economic recovery slow due to surge of Covid, residential real estate will continue to attract investment as it is a safe-haven asset.
As an industry body, we highly appreciate Central Bank’s decision to increase the maximum aggregate exposure threshold under the resolution framework 2.0. As a result, individual and MSME borrowers’ loan (up to Rs 50 crore) can be able to opt for restructuring.
The Reserve Bank of India will also purchase the remaining Rs. 40,000 crore worth of government securities under the G-SAP 1.0 on June 17. In this, Rs. 10,000 crore would constitute purchase of State Development Loans (SDLs).The inclusion of SDL on G-SAP would support state government borrowings from the market. Considering increasing debt burden of the States, this policy measure will be really effective.
RBI said that it will open a special liquidity window of Rs. 15,000 crore till March 30, 2022, with tenors of up to 3 years at the repo rate. Under this banks can provide lending support to hotels, restaurants, travel firms, aviation ancillary services and other services that include private bus operators, car repair services, spa, and saloons. As an industry body, ICC highly appreciates this decision. It would go a long way in supporting cash strapped Hospitality industry.
Dr. Rajeev Singh, – Director General, Indian Chamber of Commerce (ICC)