MSMEs welcome RBI monetary policy

New Delhi, Oct 9 (KNN) The Monetary Policy announced by Reserve Bank of India Governor Shaktikanta Das kept the repo rate unchanged at 4 per cent with their stance remaining ‘accommodative’.

With a FY22 GDP growth forecast at 9.5 per cent, the reverse repo rate remains unchanged at 3.5 per cent. While CPI inflation is projected at 5.3% for the current fiscal year.

The RBI has increased the transaction limit on Immediate Payment Service

(IMPS) of the National Payments Corporation of India (NPCI) to INR 5 lakh from INR 2 lakh.

Federation of Indian Micro and Small & Medium Enterprises (FISME) has lauded the Monetary Policy Report - October 2021 and welcomed the increase in the limit of Immediate Payment Service (IMPS) to INR 5 lakhs.

“This is a welcome move for facilitating instant payments/receipts for micro and small businesses, particularly in the B2C space," said Financial Advisor to FISME Rajesh Dubey.

Commenting on the announcement, Rahul Sharma, Co-Founder, Equity99 said, “We expect the policy to be beneficial for market and Banks will show good performance also NBFC stocks will perform as RBI has been decided to introduce the Internal Ombudsman Scheme to further strengthening the internal grievance redress mechanism of NBFCs.”

RBI’s Monetary Policy Committee (MPC) has said that the festival season will see a boost in urban demand.

Rajesh Sharma, Managing Director, Capri Global Capital Ltd stated, “Today’s announcement would accelerate the market momentum, however, to achieve timely growth, the policymakers may accommodate more monetary-fiscal policy combinations to strengthen the sectors most affected by the Pandemic. Permitting Banks to On-lend through NBFCs focusing on priority sector would give an impetus to scale up their business without worrying about financial destitution. Moreover, the introduction of the Internal Ombudsman Scheme (IOS) for certain categories of NBFCs that have higher customer interface is a much-needed step as it will reduce the hassle for customers in choosing the right ombudsman.”

In view of the shrill rise in fuel prices, the RBI Governor the issue has been flagged to the government. He said the government has taken several measures on pulses, edible oils and certain other supply side issues.