No.PR-193 August 6, 2020 New Delhi PHD Chamber welcomes accommodative policy stance by the RBI & Debt Restructuring of stressed MSMEs Dr D K Aggarwal, President, PHD Chamber of Commerce and Industry, has appreciated the accommodative stance of the Reserve Bank of India in consideration of the recent developments at the global markets and in the domestic economy. Though the high frequency economic indicators have started recovering from their lows, increase is inflation expectations in the coming months on the back of supply chain disruptions during the lockdown period cannot be ruled out, said Dr. D K Aggarwal. So, at this juncture, the calibrated decision of the Reserve Bank of India is highly appreciable and we look forward that inflation remains in benign conditions on the back of expected good Kharif crops and smoothening of supply chain as the unlock is in the process, he said. RBI’s announcement of allowing stressed MSME borrowers to restructure debt if their loans were classified as standard as on 1 March 2020 is highly appreciable and would go a long way in addressing the financial problems of the MSMEs, said Dr. Aggarwal. At this juncture, we urge the banking sector to percolate all the 115 bps cut in the repo rate by the RBI during the last four months for the benefit of trade, industry and consumers for rejuvenating the demand and economic growth trajectory sooner than later, said Dr D K Aggarwal. Ends Media Division PHD Chamber of Commerce and Industry
PHD Chamber of Commerce and Industry, established in 1905, is a proactive National Apex Chamber working at the grass-root level and with strong national and international linkages.