The RBI’s move to slash reverse repo rate and provide a re-finance window of Rs 50,000 crore will infuse liquidity into the system and nudge banks to lend more, enabling businesses to overcome the financial stress caused by the coronavirus pandemic, India Inc said on Friday.
CII Director General Chandrajit Banerjee said the RBI’s continued resolve to ensure that the availability of liquidity, especially for the stressed sectors, remains adequate is commendable.
FICCI President Sangita Reddy said relaxation in regulatory requirements further will help banks in dealing with the COVID impact. Ficci would request RBI that additional working capital should be mandated rather than depending on the discretion of the banks.
Thomas Muthoot, Founder-Director, Muthoot Pappachan Group said:”Specific measures announced in terms of directing banks to invest 50 per cent of funds under TLTRO 2.0 in mid-sized NBFCs through NCDs, etc., refinancing of all-India financial institutions like SIDBI and NHB and also reduction in reverse repo rate, would help substantially in liquidity for us to lend a lot more to the common man, who are terribly impacted by the current crises.”
