Coimbatore : Shakthikanta Das, Governor, RBI today announced the third bi-monthly policy Monetary Policy for the year 2019 - 20 and noted the decision of Monetary Policy Committee to reduce the repo rate by 35 basis points from 5.75% to 5.4% with immediate effect.
Coimbatore : Shakthikanta Das, Governor, RBI today announced the third bi-monthly policy Monetary Policy for the year 2019 - 20 and noted the decision of Monetary Policy Committee to reduce the repo rate by 35 basis points from 5.75% to 5.4% with immediate effect.
Hailing the reduction of policy Repo Rate by 0.35 % from 5.75% to 5.4%, Raja M Shanmugham, President of Tirupur Exporters Association noted that the Monetary Policy Committee's decision is an accommodative stance.
He specifically thanked the Hon’ble Union Minister of Finance Nirmala Seetharaman and the RBI Governor for this decision which will support for the growth of the industries.
Raja M Shanmugham said overall, Banks have reduced their Weighted Average Lending Rates (WALRs) on fresh rupee loans only by 0.29% during the current easing phase so far (February-June 2019) when RBI reduced the REPO rates by 0.75% during this period.
He further mentioned that despite the meetings RBI Governor had with banks and asking them to transmit the reduction, one or two banks only reduced their rates.
Raja M Shanmugham, said that by taking into account the requirement of the industry, all banks should come forward to pass on the reduction of interest rate to the borrowing units, which is desperately required for the knitwear garment exporting units, particularly to MSME exporting units which are suffering further to macroeconomic changes.
He further said he has also directly appealed to the Hon’ble Union Finance Minister and the Hon’ble Union MSME Minister in the meeting held yesterday in New Delhi to take appropriate measures for the reduction of interest rates to bail out the crisis-ridden MSME sector in Tirupur.
Hailing the reduction of policy Repo Rate by 0.35 % from 5.75% to 5.4%, Raja M Shanmugham, President of Tirupur Exporters Association noted that the Monetary Policy Committee's decision is an accommodative stance.
He specifically thanked the Hon’ble Union Minister of Finance Nirmala Seetharaman and the RBI Governor for this decision which will support for the growth of the industries.
Raja M Shanmugham said overall, Banks have reduced their Weighted Average Lending Rates (WALRs) on fresh rupee loans only by 0.29% during the current easing phase so far (February-June 2019) when RBI reduced the REPO rates by 0.75% during this period.
He further mentioned that despite the meetings RBI Governor had with banks and asking them to transmit the reduction, one or two banks only reduced their rates.
Raja M Shanmugham, said that by taking into account the requirement of the industry, all banks should come forward to pass on the reduction of interest rate to the borrowing units, which is desperately required for the knitwear garment exporting units, particularly to MSME exporting units which are suffering further to macroeconomic changes.
He further said he has also directly appealed to the Hon’ble Union Finance Minister and the Hon’ble Union MSME Minister in the meeting held yesterday in New Delhi to take appropriate measures for the reduction of interest rates to bail out the crisis-ridden MSME sector in Tirupur.