PM lauds RBI measures; says will enhance liquidity and improve credit supply
New Delhi, Apr 17 : Prime Minister Narendra Modi lauded the announcements made by RBI on Friday and said these measures will enhance liquidity and improve credit supply.
In a tweet, Mr Modi said, ‘Today’s announcements by the RBI will greatly enhance liquidity and improve credit supply. These steps would help our small businesses, MSMEs, farmers and the poor. It will also help all states by increasing Ways and Means Advances (WMA) limits’.
Finance Minister Nirmala Sitharaman said to increase MSME liquidity, the RBI announced a targeted long-term repo operation totalling Rs 50,000 crore aimed at mid and small NBFCs and MFIs. ‘This amount can be revised upwards if needed in the future. RBI also cut the reverse repo rate by 25 bps to 3.75 per cent.’
‘To increase MSME liquidity, the RBI announced a targeted long-term repo operation totalling Rs 50,000 crore aimed at mid and small NBFCs and MFIs. This amount can be revised upwards if needed in the future. RBI also cut the reverse repo rate by 25 bps to 3.75 per cent.’
Home Minister Amit Shah said RBI’s decision to extend Rs 25,000 crore credit facility to NABARD will greatly help our farmers, 15,000cr to SIDBI will provide much needed financial stability to MSMEs and startups, boost the Make in India program. ‘10,000cr to NHB and liquidity measures for Banks & NBFCs will help too,’ he added.
BJP president Jagat Prakash Nadda said today’s announcement by the RBI is in line with the vision of our PM to take steps which are business & people friendly. ‘RBI had already taken some big steps on March 27, adding that these steps will go a long way to help PM Modi’s effort to keep the economy strong during and after the pandemic.
‘Initial Rs 50,000 Cr to support small & mid NBFCs,refinance facilities of Rs 25,000 Cr to NABARD to help farmers, Rs 15,000 Cr to SIDBI to boost loans to start-ups & SMEs, Rs 10,000 Cr to NHB to support housing for all, will prove to be significant steps,’ he said on micro-blogging site twitter.
Commerce and Industry Minister Piyush Goyal said given the visionary steps taken under the leadership of PM Narendra Modi to protect the lives of the people, today’s steps by RBI to support the economy will provide liquidity for growth and help India emerge as a world leader in a post COVID-19 world.
‘Exclusion of moratorium period from 90 day NPA norm will help borrowers, while simultaneously the health of banks is being maintained through 10 per cent higher provisioning and stopping dividends for the year,’ he said in his missive.
Liquidity in the economy will be ensured as Banks are being encouraged to lend by reducing Reverse Repo Rate by 0.25 per cent while Banks which are facing liquidity issues will benefit from reduction in Liquidity Coverage Ratio, he added.