RBI’s G-sec acquisition programme will enhance liquidity and support demand: PHD Chamber

No. PR- 007

April 12, 2021

New Delhi

RBI’s G-sec acquisition programme will enhance liquidity and support demand: PHD Chamber

Mr. Sanjay Aggarwal, President, PHD Chamber of Commerce and Industry, has appreciated the calibrated move to enhance liquidity   in the country to help businesses and households in the difficult times of pandemic COVID-19.

According to the Monetary Policy Statement of April 7, 2021, the Reserve Bank of India (RBI) has decided to put in place a secondary market G-sec acquisition programme or G-SAP 1.0, wherein it will purchase government securities of Rs 1 lakh crore in Q1 of 2021-22.

The policy approach adopted by the RBI will certainly help the interest rates to remain benign along with the rational yields in the bond market, said Mr. Sanjay Aggarwal in a press statement issued here today.

At this juncture, Mr. Sanjay Aggarwal has urged the banking sector to extend more and more credit facility to businesses and households, so that the effectiveness of calibrated policy environment of RBI is percolated at the ground level.

Mr. Sanjay Aggarwal is hoping that inflation will also remain in benign conditions vis-s-vis improvement in supply chain and significant growth of agriculture sector in the last many quarters.

Mr. Sanjay Aggarwal expects that the cycle of capex will rejuvenate in the coming quarters on the back of supportive fiscal and monetary policies adopted by the Central Government and RBI.

Refuelling of demand in the country, quarter after quarter, has become crucial to mitigate the daunting impact of pandemic COVID-19, said Mr. Sanjay Aggarwal.

Mr. Sanjay Aggarwal is of view that Rupee will also not be in much pressure going forward as the fundamentals of economy are strong and capital flows are expected to remain intact on the back of anticipated double digit economic growth trajectory for the year 2021-22.

Ends

Media Division

 

PHD Chamber of Commerce and Industry