Slash CRR and repo rate, India Inc tells RBI

It said the measures will ease liquidity for borrowers, help revive the investment cycle and support growth.

The industrialists on Thursday appealed to the Reserve Bank of India (RBI) to slash the repo rate and cash reserve ratio (CRR) by 50 basis points (bps) each.
 
They said these measures will ease liquidity for borrowers, help revive the investment cycle and support growth.
 
Industry bodies such as the Confederation of Indian Industry (CII), the Federation of Indian Chambers of Commerce and Industry (FICCI) and the Associated Chambers of Commerce and Industry (Assocham) met RBI Governor Shaktikanta Das in this regard.
 
The CII advised at least a 50 basis points cut in the cash reserve ratio (CRR) to ease the tight liquidity situation. It also demanded a cut in the repo rate by 50 basis points, which will help facilitate the flow of credit to the businesses, especially to micro, small and medium enterprises (MSMEs) and the infrastructure sector.
 
“CII suggested that RBI consider limiting the collaterals sought by banks to 133% of the exposure and eliminate the need for personal guarantees where sufficient collateral exists,” a CII spokesperson was quoted as saying.
 
Those who met RBI governor among others were Uday Kotak, president-designate and Adi Godrej, former president.
 
“CII suggested that RBI consider limiting the collaterals sought by banks to 133% of the exposure and eliminate the need for personal guarantees where sufficient collateral exists,” said spokesperson, as quoted by Mint.
 
The delegation also discussed funding issues in infrastructure sector. It called for suitable intervention such as implementation of debt resolution plans and inter-creditor agreements on an urgent basis.
 
Source: Businessline, LiveMint

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