Commenting on RBI financial policy statement now, Mr Uday Shankar, President, FICCI stated,”The status quo concerning the repo rate was expected given the inflation issue. On the other hand, the prejudice signaled by the Central Bank towards keeping an accommodative posture is reassuring.

The brand new spike in COVID ailments is stressing as well as the imposition of neighborhood lockdowns may undermine the restoration prospects over the long run. At this juncture, it’s vital to make sure that the profits made over the last couple of months aren’t reversed”

“We are delighted to notice Reserve Bank of India’s commitment towards keeping conducive liquidity scenario over an extended horizon amidst continuing doubt. The expansion of strategies such as on-tap TLTRO for certain industries and bank lending to NBFCs for on-lending to agriculture, MSME, home businesses as priority sector financing; the extra refinancing facility supplied for SIDBI, NHB, & NABARD; along with the comfort in the duration of parking of External Commercial Borrowing (ECB) profits in term deposits are all positive measures,” additional Mr Shankar.

“Moreover, the Central Bank’s statement to commence the secondary marketplace G-Sec acquisition plan (G-SAP 1.0) in the first quarter of this present financial year will guarantee financial stability particularly amidst the current volatility seen in the return prices. In addition, this is a positive sign towards fulfilling the big monetary borrowing programme of the government,” he explained.

“Finally, it also reassuring to note that furthering financial inclusion remains a high priority for both the Government and the Central Bank.  The enhancement of limitation of maximum equilibrium in accounts of Payments Banks to Rs. 2 Lakh per individual and the expansion of Centralised Payment Systems (CPS) – RTGS and NEFT – membership to non-bank payment method operators such as Prepaid Payment Devices (PPI) exemptions, charge card systems, whitened tag ATM operators along with Trade Receivables Discounting System (TReDS) systems are appropriate measures in the Central Bank’s effort to expand reachability of proper lending to people in the base of the pyramid,” additional Mr Shankar.

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