Encouraged to note balanced approach of RBI: FICCI

NEW DELHI : Commenting on the monetary policy announcement made earlier today, Mr Uday Shankar, President, FICCI said, “The policy tone was on expected lines and comes without any surprises. We are encouraged to note the balanced approach of the Reserve Bank with growth continuing to be given due consideration. As we move ahead on the recovery course, support from all channels will be needed until growth finds a firmer ground. RBI continues to maintain adequate liquidity even as we see some moves towards normalization.”

“Another important indication from the Central Bank was some easing expected on the inflation front with risks broadly balanced. Nonetheless, the recent spurt in energy prices and prices of industrial inputs remain a concern. We agree with RBI’s observation that efforts to contain cost-push pressures through a calibrated reversal of the indirect taxes on fuel could contribute to a more sustained lowering of inflation and an anchoring of inflation expectations. Fuel prices are at an unsustainable levels and FICCI has been representing for unwinding of taxes on fuel for some time now,” added Mr Shankar.

“Lastly, MSMEs have been through a very challenging time with two subsequent waves of the pandemic. Continued support remains particularly important for these enterprises. We are happy to note the extension of on tap special long-term repo operations (SLTRO) for Small Finance Banks (SFBs) and on lending facilities through NBFCs for underserved segments. We hope that RBI will also look at other important measures such as change in classification norms of MSMEs for NPAs and reduction in cash margins as these will go a long way in alleviating the challenges being faced by these enterprises,” said Mr Shankar.