Interest rate cut will bring relief to the SMEs: FISME

New Delhi, Sept 29 (KNN) In a ‘bigger than expected’ move that is being seen as a ‘Diwali Gift’ for the corporate sector, RBI today slashed the interest rates by 50 basis points, which will reduce their finance costs and trigger investments.
 
Apex body for the MSME sector, Federation of Indian Micro and Small & Medium Enterprises (FISME), praising the move said, “We welcome the RBI’s decision to cut the interest rates by 50 basis points.”
 
“It’s a very positive move for the MSME sector. It would bring much relief to the small sector which are struggling with the high finance costs with interest rates hovering somewhere between 14 per cent to 16 per cent,” FISME said.
 
Also, Finance Minister’s assurance for immediate transmission of rate cuts by the banks will boost investment climate in any country, it added.  

In the Fourth Bi-monthly Monetary Policy Statement, 2015-16, RBI today cut the repo rate by 50 basis points from 7.25 per cent to 6.75 per cent with immediate effect.

The apex bank kept the cash reserve ratio (CRR) of scheduled banks unchanged at 4.0 per cent of net demand and time liability (NDTL). (KNN Bureau)