RBI cuts repo rate to make loans affordable to MSMEs, exporters: Piyush Goyal
The Reserve Bank of India on Thursday had cut the repo rate (short term lending rate at which it gives loan to banks) from 6 to 5.75 percent in its second bi-monthly policy decision.
The Reserve Bank of India on Thursday had cut the repo rate (short term lending rate at which it gives loan to banks) for the third time in a row, to 5.75 percent in its second bi-monthly policy decision, adopting an accommodative stance.
The repo rate cut by the Reserve Bank of India (RBI) will help boost India's economy by making loans affordable to MSMEs, exporters and home buyers, said Piyush Goyal, Commerce and Industry minister, on Thursday.
He added that removal of charges on NEFT and RTGS transactions will bring great relief to the people and will help in promoting Digital India initiative.
"Repo rate cut by @RBI will boost India's economy by making loans affordable to MSMEs, exporters & home buyers," he said in a tweet.
"There is room for further rate cut. This third consecutive rate cut in repo rate will lead to effective transmission, encouraging banks to lower their lending rates for both retail and corporate credit," said Sandip Somany, President, FICCI
Tirupur Exporters Association (TEA) also appealed to all banks to pass on the cut in the rate to borrowing units in the knitwear garments export sector.
TEA said that the repo rate cut is desperately required for the knitwear garment exporting units, particularly MSME exporting units which have been suffering further to macroeconomic changes.
Piyush Goyal's tweet on the repo rate cut comes a day after he urged representatives of industry, trade and exports bodies to reduce dependency on subsidies and grants from the Central Government and strive to make industry and production more competitive and self-reliant.
Goyal made the statement while addressing a joint meeting of the Board of Trade and the Council of Trade Development and Promotion, organised by the Ministry of Commerce and Industry and the Directorate General of Foreign Trade (DGFT) in New Delhi.