Bankers Praise RBI's Prudent Policy Decision Amid Global Uncertainties
RBI policy prudent, well-calibrated: Bankers welcome regulatory measures
Business Standard
Image: Business Standard
Bankers have welcomed the Reserve Bank of India's (RBI) decision to maintain interest rates, viewing it as a prudent measure amidst global uncertainties. The RBI's regulatory changes, including the removal of certain requirements, are expected to strengthen banks' capital positions and support sustained credit growth.
- 01RBI's decision to hold rates is seen as prudent amid global uncertainties.
- 02Changes in regulatory measures aim to strengthen banks' capital positions.
- 03The removal of certain requirements will enhance liquidity for small businesses.
- 04Bankers emphasize the importance of macroeconomic stability.
- 05Credit demand is expected to remain resilient in the near term.
Advertisement
In-Article Ad
Bankers have expressed strong support for the Reserve Bank of India's (RBI) decision to maintain interest rates during its recent policy review, calling it a prudent and well-calibrated measure. CS Setty, chairman of the State Bank of India (SBI), highlighted that this decision reflects a cautious approach amid ongoing global uncertainties, including geopolitical tensions in West Asia and fluctuating crude oil prices. The RBI also introduced sector-specific measures, such as the removal of the Investment Fluctuation Reserve requirement and easing the computation of the Capital Adequacy Ratio (CAR), which are expected to bolster banks' capital positions and support credit growth. Ajay Kumar Srivastava, managing director of Indian Overseas Bank, emphasized the importance of prioritizing macroeconomic stability. Additionally, the removal of due diligence requirements for the Trade Receivables Discounting System (TReDS) platform is anticipated to improve liquidity access for small businesses. Overall, bankers view these regulatory measures as a positive step towards enhancing the resilience of India's economy.
Advertisement
In-Article Ad
The RBI's decision to maintain interest rates and enhance regulatory measures is likely to support sustained credit growth, which could benefit consumers and businesses seeking loans.
Advertisement
In-Article Ad
Reader Poll
Do you think the RBI's decision to maintain interest rates will benefit the economy?
Connecting to poll...
More about Reserve Bank of India
Read the original article
Visit the source for the complete story.






