RBI Governor's announcement supports MSME sector to safeguard jobs: Venu Srinivasan, TVS Motor Company
Reserve Bank of India (RBI) Governor Shaktikanta Das held a press conference regarding the current financial condition of the country and what measures will be taken in order to maintain a stable situation for the market.
In response to the governor's address to the media, Venu Srinivasan, Chairman at TVS, said, "I strongly support the measures announced by the RBI today to support the economy in this period. It is a sign of their continued efforts to stimulate economic activity and protect jobs. The LTRO for NBFCs and micro-lenders is a good tool to ease liquidity without tinkering with policy rates and Rs. 50,000 crore is a substantial amount. This should restore confidence especially among the MSME sector which provides a significant portion of the country's jobs and is integral to all supply chains.
That coupled with a cut in the reverse repo rate will incentivise banks to actively lend to those most in need of funds and make it affordable for businesses to borrow, address their working capital needs and get back into action as the country opens."
