Dr. A Sakthivel Chairman Apparel Export Promotion Council (AEPC), reacting to the RBI mid quarterly review of its monetary policy stated that, “We are not happy with the non reduction of repo rate in quarterly review.
“The cost of credit is very high compared to the other countries; we lose our competitive advantage as far as capital availability is concerned. We expected that immediate relief to be given to exporters who are facing the problem of credit crunch.”
On the reduction of cash reserve ratio (CRR) of scheduled banks by 25 basis points from 4.75 per cent to 4.50 per cent Dr. Sakthivel remarked, “Reduction of CRR to 25 basis points will infuse liquidity of funds for the exporters. We request banks to facilitate exporters in liquidating the finances at the earliest.”
As for the data released by RBI around 170 billion of primary liquidity will be injected into the banking system.
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