Understandably, the Monetary Policy Committee in its meeting has left the repo & reverse rates unchanged. This was expected and though in view of the creeping inflationary pressure in the economy.

However, the RBI has addressed some issues regarding restructuring of loans and also infusion of some more liquidity into the banking system via, the NHB and the NABARD. What is required in this trying times is to ensure that liquidity is maintained in the financial system and industry particularly, small and micro enterprises have accessed to credit without complex requirements.

There is also need to extend the moratorium on loans by some more months until the end of financial year so that industry is able to stand on its feet in view of the continued Corona pandemic and serious uncertainties in the domestic and global market . The restructuring of loans wherever deserving and needed most be done with a view to ensuring the flow of credit to the MSMEs.

Loans against gold enhanced to 90% of the value from the current 75%, RBI to amend the priority sector lending guidelines to remove regional disparity, Revival of real estate sector is a welcome move

We also request the RBI to keep at ease the regularly compliances required with regard to NPAs till this turn normal. K.B.ARASAPPA

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