CII wants RBI to cut CRR, repo rate by 50 bps

The Confederation of Indian Industry (CII) which met RBI governor Shaktikanta Das on Thursday said they wanted 50 bps cut in cash reserve ratio (CRR) and repo to boost credit flow.

"CII suggested policy measures required to ease the tight liquidity situation by effecting a cut in CRR rate of at least 50 basis points, measures to facilitate flow of credit to industry especially to MSMEs and Infrastructure sector and address the high cost of credit by considering reduction in repo rate of 50 basis points given that inflation has been consistently low," the industry body said.

CII further suggested to the RBI that considering the important role played by extremely large non-banking financial companies (NBFCs) with impressive track record, there is a strong case for a separate classification of these NBFCs as “Exceptionally Large NBFCs [ELNBFCs]” to facilitate availability of liquidity window facilities akin to banks and providing full access to the Aadhaar database as they significantly drive financial inclusion in the retail and SME segments.

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