RBI’s intent to enhance liquidity noted
Banks would be encouraged to lend more to the beleaguered businesses following RBI’s October decision on report rate, hoped ASSOCHAM secretary general Deepak Soods, joining exporters and financial sector leaders welcoming the Reserve Bank of India’s (RBI) 9 Oct 2020 decision to keep the rate unchanged.
Measures like on-tap targeted long-term repo operations (TLTRO) will help build further confidence in the financial sector, says Dinanath Dubhashi, MD & CEO, L&T Financial Services on Reserve Bank of India’s (RBI) announcements relating to Non-Banking Financial Companies (NBFCs).
Exporters appreciated the central bank’s intent to enhance liquidity support for financial markets to revive activity in targeted sectors of the economy, besides providing a boost to export sector, according to FIEO President Sharad Kumar Saraf.
On 9 Oct 2020, the RBI kept the repo rate unchanged at 4% in a move to boost the economic activities as business resumes from the COVID-19 pandemic.
Extension of the co-origination scheme will give greater operational flexibility to the lending institutions. The introduction of round the clock Real Time Gross Settlement (RTGS) facility is encouraging and supportive of growth, said Dubhashi.
FIEO President also welcomed the changes made in Export Data Processing and Monitoring System (EDPMS), making it more user-friendly and equitable basing it on the case-specific recommendations of the AD banks will further bring ease in the working of the exporting community.
Businesses believe that easing of norms for lending to the states would help adequate availability of liquidity with the states for an increased government spending both at the Central and state levels. #economy #banking #financial #loans #debts #exports #manufacturing #housing /fiinews.com
