Port Wings News Network:
Hailing the reduction of policy Repo Rate by 0.35 % from 5.75% to 5.4%, Shri. Raja M Shanmugham, President, Tirupur Exporters Association (TEA), appreciated the Monetary Policy Committee decision to maintain the accommodative stance of Monetary policy stance.
Shri. Shakthikanta Das, Governor, RBI, on 07 August 2019 announced Third Bi monthly Monetary Policy for the year 2019 – 20 and noted the decision of Monetary Policy committee to reduce the policy repo rate by 35 basis points from 5.75% to 5.4% with immediate effect.
He specifically thanked the Union Minister of Finance and RBI Governor for this decision which will support for the growth of the industries.
While pointing out the Monetary Policy statement, Shri Raja M Shanmugham said overall, Banks have reduced their Weighted Average Lending Rates (WALRs) on fresh rupee loans only by 0.29% during the current easing phase so far (February-June 2019), when RBI reduced the REPO rates by 0.75% during this period. He further mentioned that despite the meetings RBI Governor had with banks and asking them to transmit the reduction, one or two banks only reduced their rates.
Shri. Raja M Shanmugham, President hope that by taking into account the requirement of industry, all banks will come forward to pass on the reduction of interest rate to the borrowing units, which is desperately required for the knitwear garment exporting units, particularly to MSME exporting units which are suffering further to macroeconomic changes.
He further said he has also directly appealed to the Union Finance Minister and the Union MSME Minister in the meeting held on 6 August 2019 in New Delhi to take appropriate measures for reduction of interest rates to bail out the crisis ridden MSMEs in Tirupur.