Industry hails RBI for maintaining accommodative stance

by Nidhi Bhati

Industry chambers have hailed the Reserve Bank of India (RBI)’s decision to maintain the status quo with an accommodative stance. ASSOCHAM stated that the move is reassuring to the industry and trade. It added that the steps enumerated by the apex bank would ensure domestic financial stability in the wake of volatility in the global financial markets. The Federation of Indian Chambers of Commerce & Industry (FICCI) lauded the RBI for its commitment towards maintaining conducive liquidity situation over a longer horizon amidst continued uncertainty. The extension of schemes like on-tap Targeted Long Term Repo Operation (TLTRO) for specific sectors and bank lending to non-banking financial companies (NBFCs) for on-lending to agriculture, micro, small and medium enterprise (MSME), housing sectors as priority sector lending, the additional refinancing facility provided for SIDBI, NHB, and NABARD and the relaxation in the period of parking of External Commercial Borrowing (ECB) proceeds in term deposits are all positive steps, it added.