FM Nirmala Sitharaman: Will Ensure Banks Pass On Rate Cut Benefits
Nirmala Sitharaman Finance minister of India on Friday gave an overview, that the finance ministry was closely monitoring the execution of relief measures announced to tackle the economic impact of Covid-19 at the economy so that the benefits, chiefly the change of repo rate cuts, ultimately benefit the consumers.
Engaging in word with the managing committee members of the Ph.D Chamber of Commerce and Industry (PHDCCI), the Finance minister added that the government has always recognized the advantageous wealth creators, “as they generate employment opportunities and optimally utilize the resources for promoting the socio-economic development in the country.”
According to FM Sitharaman “We are closely monitoring the situation in consultation with banks so that relief measures announced by the government are effectively
percolated at ground levels especially the transmission of repo rate cuts to consumers in terms of reduced interest rates.”
“The government is also closely observing developments in the disbursement of loans under the provision of Rs3 lakh crore collateral-free automatic loans for businesses
to mitigate the daunting impact of pandemic COVID-19 on trade and industry the government has always provided a helping hand without differentiation to all industry
stakeholders especially to micro, small and medium sector enterprises (MSMEs),” FM Nirmala Sitharaman added.
The government announced several compliance provisions and loan schemes for MSMEs as part of the Rs 20 lakh crore fiscal package aimed at directly benefitting
companies that face liquidity crunch and are hence unable to keep businesses afloat. DK Aggarwal, president, PHDCCI, however, demanded a one-time restructuring of
the loans without changing the classification for the severely affected sectors such as tourism, aviation, real estate, automobile, entertainment, among others.