Repo rate remains unchanged, Indian Bank CMD hails RBI’s move

Chennai, Apr 8 : Indian Bank MD and CEO Shanti Lal Jain today welcomed the RBI’s decision not to change the Repo rate. In a statement here, he said “by maintaining its accommodative stance and unchanged policy rates, RBI once again indicated that economic growth is its primary objective.’ RBI has brought in several measures to manage the liquidity in the system and keep reigning inflation under control while sustaining the economic growth. Announcement of Standing Deposit Facility (SDF) with floor at 25 bps below Repo rate (presently 3.75%) for absorbing the liquidity and ensuring financial stability is a welcome move. Extending applicability of Risk Weight guidelines of individual housing loans till March 2023, enhanced limits under HTM category from 22% to 23% in SLR holdings would help the banks in improving their credit flow to housing segment and for effective management of their liquidity, respectively, he said. The proposal to make available Cardless Cash withdrawal facility across all the banks and ATM networks using UPI will give further fillip to the digital push. In this policy, RBI has brought in several measures to achieve the twin objectives of economic growth and inflation control, he said. GV 1712

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