AIAI welcomes the cut in repo rate

AIAI welcomes the cut in repo rate in Monetary Policy of Reserve Bank of India (RBI) by 25 bps with immediate effect. This will give further boost the economic growth, but in view of the low inflation RBI could have considered 50 bps says Mr. Vijay G. Kalantri, President, All India Association of Industries (AIAI). 

RBI vide its notification dated 12th February 2018 has done away with the Strategic Debt Restructuring (SDR) AIAI feels that Circular of February 12th  should be withdrawn by RBI to allow bank to go ahead with restructuring of industry and infra projects . As it is not only impacting NPA settlement process also resulting in fear psychosis to entrepreneurs and loss of job rather than creating jobs.

AIAI further feels that RBI should further consider relaxation in Basel Norm III, to bring in the much needed liquidity to industry and trade.