No.PR-92 May 22, 2020 New Delhi RBI steps to combat COVID-19 inspiring, growth projection in negative territory worrying : PHD Chamber While worrying about the growth projection in the negative territory, Dr D K Aggarwal, President, PHD Chamber of Commerce and industry has appreciated RBI for taking calibrated steps to combat the daunting impact of COVID-19 on trade and industry. We are still hopeful that various measures undertaken by the government and RBI will help India to maintain its growth rate in the positive trajectory, said Dr Aggarwal. Cut in repo rate by 40 basis points is inspiring as it will further ease the liquidity conditions and enable the banking sector to percolate full effects of RBI measures to trade, industry and people, said Dr Aggarwal. We urge the banking sector to fully transmit the repo rate cut along with the earlier rate cuts to trade, industry and people so that effect of the policy measures becomes fruitful at the ground level, said Dr Aggarwal. We appreciate the extension of term loan moratorium by three months till 31st August 2020 to help trade and industry to mitigate the daunting impact of pandemic COVID-19, said Dr Aggarwal. We urge the banking sector to provide extension of moratorium facility to all the term loan borrowers with full effect to facilitate them to fight with daunting impact of pandemic COVID-19 on businesses, said Dr Aggarwal. In order to provide greater flexibility of SIDBI, another 90 days extension for the 90-day term loan facilities will go a long way to increase liquidity support to the MSMEs sector, said Dr Aggarwal. The steps undertaken by RBI has potential to stabilize the macroeconomic environment, going forward, said Dr Aggarwal Various reform measures undertaken by RBI such as facility of Rs 15,000 crore line of credit for 90 days for US dollar swap facility to EXIM Bank, increase of maximum permissible period of pre shipment and post shipment export credit, hiking the group exposure limit for banks to 30% from 25%, among others would go a long way to address the issues and challenges of trade & industry and strengthen the position to fight against covid-19, said Dr 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.