FICCI welcomes RBI's consistency and approach to manage challenges of economy and health

Jun 04, 2021

Emphasis on relieving stress on MSMEs noteworthy

Support to contact -based services will provide relief

NEW DELHI, 04 June 2021: Commenting on the RBI's monetary policy announcement, Mr Uday Shankar, President, FICCI said, "Central Bank's consistency and approach towards managing the current challenges both economic and those on health front is laudable. The latter was clearly reflected in the announcement made earlier last month. This time around we are happy to note the emphasis on relieving the stress faced by MSMEs. The second wave has had a debilitating impact and in this hour of need all levers must be pulled to support our MSMEs. We also welcome the accommodative stance of the Bank."

"Further, the support given to the contact-based services like hotels/ restaurants/ tourism/ aviation ancillary services/ spas/ parlours through the Rs 15,000 crore separate liquidity window should provide some relief to the sector," said Mr Shankar.

"The additional liquidity facility extended to SIDBI, expanded coverage under Resolution Framework 2.0 to borrowers upto Rs 50 crores and the allowance to Regional Rural Banks to issues CDs are significant steps for micro and small enterprises. We appreciate the Reserve Bank of India's constant endeavour to ease the conditions for these severely hit enterprises," added Mr Shankar.

"While this signalling is critical and timely, effective liquidity transmission calls for a proactive approach from the banks, since banks are the key intermediaries for implementing many of the announcements made by RBI. In this time of crisis, FICCI would urge members of the banking fraternity to double up their efforts and support the corporate sector including the MSMEs across manufacturing and services leveraging all policies announced by the government and RBI in a swift manner so that the intended benefits reach the targeted groups quickly," said Mr Shankar.