Industry Experts in favour of RBI’s Monetary Policy
February 6, 2021; Guwahati: Reserve Bank of India Governor Shaktikanta Das-led Monetary Policy Committee (MPC) today announced their policy decision to keep policy rates unchanged. Das added that it would maintain support for the economy's recovery from the pandemic by ensuring ample liquidity for markets to absorb a massive government borrowing program. Experts from different industries have expressed their support in favour of this decision.
MD & CEO of Punjab National Bank, Shri CH. S. S. Mallikarjuna Rao said, “The RBI policy announcements are on expected lines in terms of holding of policy rates and maintaining an accommodative stance. The policy has perfectly complemented the Union Budget in supporting the growth impulses. Extending the On Tap TLTRO to NBFCs and incentivizing lending to new MSME borrowers will support lending to these sectors. Unveiling of structural reform of retail participation in G sec market along with extension of HTM limit relaxation will aid smooth completion of Govt. borrowing programme. The normalization of CRR in a phased manner would smoothen the liquidity absorption process.”
Speaking regarding RBI’s new monetary policy, Mr. Prabhat Chaturvedi, CEO, Netafim Agricultural Financing Agency said, “The Monetary Policy Committee’s sustained accommodative stance is positive from the perspective that RBI is giving utmost priority to growth. Today’s announcements by RBI to provide funds from banks under the TLTRO on tap scheme to NBFCs is a step that would ease liquidity challenges of small and mid-sized NBFCs and incentivize bank credit flows for them. Allowing banks to permit NBFCs to access these funds for the targeted lending to the desired segments such as the agriculture value chain and MSME would significantly facilitate meeting the objective of inclusive growth. These NBFCs borrow only for on-lending and hence can act as a force-multiplier and expand the credit reach to various sectors. The relief would improve cash flow and prevent further downslide from hereon. It indicates the willingness of the policymakers to ensure liquidity in the system."