Mumbai 05th February 2021 (GNI): ICC is all praise for a pragmatic policy from RBI in balancing growth with inflation. While keeping repo rates unchanged clearly gives an indication to industry cost of funds would remain low, giving a direction that CRR would rise from 3% to 4% in phases is a superb move. It would restore the CRR rate of 4% from 2013 to 2020 and at the same time make available more cheap funds to Government to fund the Fiscal Deficit and raise Aggregate Demand without raising Inflation, stated in the press release.
ICC also feels that RBI has taken a revolutionary step by providing retail investors a direct avenue to invest in Government securities, from a longer-term perspective. ICC further feels that today’s announcement by RBI is reassuring and comforting for Industry after a bold and growth oriented Union Budget.ends
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