Opening of G-Sec market to retail investors to be a game-changer: ASSOCHAM

Friday, February 05, 2021

New Delhi, 05th February 2021:
Coming on the heels of a growth-oriented Budget, the RBI's monetary policy review has injected a power-packed accelerator to take Indian economy on a path of robust recovery ensuring stability on inflation, ASSOCHAM Secretary General Mr Deepak Sood said.
 
"Without changing the benchmark Repo rates, the RBI Monetary Policy has brought in a slew of measures including a revolutionary decision to open the government securities (G-sec) market to retail investors," Mr Sood said. Despite some inflationary concerns seeping in, the RBI has stayed on course to maintaining ''accommodative stance'' on interest in the current financial year and the next fiscal, giving a comfort level to borrowers. 
 
He said the MSME sector has been given a special dispensation, with the RBI giving leeway to the banks to lend more to the crucial sector of the economy, through easing of Cash Reserve Ratio (CRR) norms. ''The unwinding of the Covid-19 related forbearances is being done seamlessly in a least disruptive manner. That is a finesse, worth looking at and appreciating," Mr Sood said, adding that the RBI has also allayed concerns over the government's large borrowing programme, crowding in the financial markets.
 
The ASSOCHAM Secretary General said, the RBI's growth projection of 10.5 per cent for FY '22 is marginally lesser than the government estimating it at 11 per cent. We feel that the growth will surprise us on the upside by being much higher, driven by multiple areas.
 
He said the RBI has recognized a pivotal role being played by the NBFCs and thus has been opening more space for accessing bank funding on lending. This would be a demand booster. Mr Sood said adding the RBI has been ahead of the curve in the fast-evolving economic paradigm in the post pandemic world. "That is a rare distinction," he said.
 
 
About ASSOCHAM:
ASSOCHAM initiated its endeavour of value creation for Indian industry in 1920. It was established by promoter Chambers, representing all regions of India. Having in its fold over 400 Chambers and Trade Associations, and serving over 4.5 lakh members across India. ASSOCHAM has emerged as the fountainhead of Knowledge for Indian industry, which is all set to redefine the dynamics of growth and development in the Knowledge Based Economy. More information available on www.assocham.org
 
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