......"RBI should lower the interest rates at this juncture to enable a cut in lending rates by banks and thus stimulate corporate investments. Bank provisions for CRR and SLR should also be brought down to ease liquidity," Ficci Secretary General Didar Singh said. The central bank should also strengthen the corporate bond market for long term funding to reduce the pressures on banks for long-term lending and to diversify the debt risk beyond banking system, he added.........
The very purpose of VITALINFO is to provide a platform for wider dissemination of updated information related to and happening of events in and around RBI.
1 comment:
There are several suggestions here, which, according to media reports, are under active consideration of GOI/RBI. For the last couple of years or so, it has become fashionable to chase RBI Governor with demands for reduction of interest rates, bringing down or abolition of SLR and/or CRR and relaxations in financial discipline. In the absence of fiscal policy support( or financial discipline on the part of GOI), a change of guard will not make RBI magnanimous on these demands. Lest we forget, interest rates regime had been deregulated long back and GOI is dependent on the captive SLR funds for borrowing from ‘market’ at reasonable rates.
Post a Comment