Opening of G-Sec market to retail investors to be a game-changer: ASSOCHAM
Without altering the benchmark Repo rates, the RBI Monetary Policy has brought in a slew of measures including a radical decision to open the government securities (G-sec) market to retail investors," Mr Sood said. Despite some inflationary concerns residing in, the RBI has remained on course to maintaining "accommodative stance" on interest from the present fiscal year and the next financial, providing a comfortable level to debtors.
He said that the MSME sector has been given a special dispensation, together with all the RBI giving leeway to the banks to lend more to the Vital sector of the economy, through easing of Cash Reserve Ratio (CRR) standards" The unwinding of this Covid-19 associated forbearances is being done seamlessly in a least disruptive manner. That's a finesse, worth studying and enjoying," Mr Sood said, adding that the RBI has also allayed concerns within the government's big borrowing programme, crowding in the financial markets.
The ASSOCHAM Secretary General stated the RBI's expansion projection of 10.5% for FY'22 is marginally lesser compared to authorities estimating it at 11%. We believe that the expansion will surprise us about the upside by being considerably higher, driven by numerous places.
He explained the RBI has recognized a pivotal role being played with the NBFCs and thus continues to be opening more space for accessing bank funding on lending. This would be a need booster. Mr Sood said adding that the RBI was ahead of the curve at the fast-evolving financial paradigm in the post pandemic world. "That is a rare distinction," he said.