Pro-industry measures by RBI to help biz to bounce back from Covid impact: AEPC
As India is recovering from the dent caused by the second wave, I am confident that the special measures, as part of the monetary policy, will support the industry to come out of this crisis,” AEPC chairman A Sakthivel said
New Delhi: Apparel exporters body AEPC on Friday welcomed RBI’s bi-monthly monetary policy review stating that the pro-industry measures will facilitate businesses to bounce back from the impact of Covid-19 pandemic.
The Reserve Bank of India (RBI) decided to leave the benchmark interest rate unchanged at 4% but maintained an accommodative stance as the economy faces the heat of the second Covid wave.
“As India is recovering from the dent caused by the second wave, which has hampered the economic activities, I am confident that the special measures, as part of the monetary policy, will support the industry to come out of this crisis,” Apparel Export Promotion Council (AEPC) Chairman A Sakthivel said in a statement.
About a special liquidity facility of Rs 16,000 crore to SIDBI, he said this will support the MSMEs for easier access to credit. The unchanged policy repo rate at 4% and reverse repo rate at 3.35% will also lead to a stable rate regime, he added.
“Another major decision that will go a long way in protecting the Indian economy is the widening of the eligible beneficiaries under Resolution Framework 2.0 by enhancing the maximum aggregate exposure threshold from Rs 25 crore to Rs 50 crore for MSMEs. This will support the MSMEs, which are under stress and enable a larger set of borrowers to avail the benefits,” he said.
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