Entrepreneurs in the small and medium enterprises dominated Tirupur knitwear cluster by and large sounded unhappy over the Reserve Bank of India’s decision to keep the repo rate unchanged even though Statutory Liquidity Ratio (SLR) was reduced. With this reduction in the SLR, Tirupur knitwear exporters are expecting banks to be more liberal in extension of credit, as also the rates turning more competitive among banks. T.R. Ramanathan, an industry consultant and senior member of Institute of Chartered Accountants of India, was of the opinion that it was long due for RBI to drastically reduce the short-term bank rates considering that the inflationary pressures had eased.
