Reserve Bank of India (RBI) today announced its bi-monthly monetary policy review. There is no change in Policy Repo Rate and Reverse Repo Rate. The central bank has also expanded the Resolution Framework 2.0.
Welcoming the move of RBI, Apparel Export Promotion Council (AEPC) Chairman Dr. A. Sakthivel said that the pro-industry measures will facilitate the industry to bounce back from the impact of the pandemic.
“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 announced by you today, as part of the monetary policy, will support the industry to come out of this crisis,” he said.
RBI Governor Shaktikanta Das announced special liquidity facility of Rs. 16,000 crore to Small Industries Development Bank of India (SIDBI).
Available at the prevailing Policy Repo Rate for a period of up to one year, this will support the MSMEs for easier access to credit. The unchanged Policy Repo Rate at 4 per cent and Reverse Repo Rate at 3.35 per cent will also lead to a stable rate regime.
Another major decision announced today is the widening of eligible beneficiaries under Resolution Framework 2.0 by enhancing the maximum aggregate exposure threshold from Rs. 25 crore to Rs. 50 crore for MSMEs.
It will support the MSMEs, which are under stress and enable a larger set of borrowers to avail the benefits.
Dr. A. Sakthivel thanked RBI for these steps.
