Experts said the additional measures taken for micro, small and medium enterprises (MSMEs), connectivity-prone sectors and digital transactions augurs well for overall economic health.
RBI’s six-member Monetary Policy Committee (MPC) has not changed the repo rate for the 10th time in a row and kept the reverse repo rate unchanged at 3.35 per cent.
George Alexander Muthoot, Managing Director, Muthoot Finance, said, “We are optimistic and optimistic about a broad-based economic revival in the year 2022.”
He said, “RBI and the government are working together to revive and sustain growth on a sustainable basis following the challenges posed by the pandemic. We welcome RBI’s stance to enable better infrastructure for MSMEs.” “
Sandeep Bhardwaj, CEO, IIFL Securities (Retail), said the continuation of the accommodative monetary stance means that the RBI and the government still want to prioritize economic recovery.
Pranay Jhaveri, managing director, India and South Asia, payments and fintech solutions company Euronet Worldwide, said the RBI’s decision to increase the e-rupee limit to Rs 1 lakh will accelerate direct benefit transfers.
The Reserve Bank has increased the limit of e-Rupee prepaid digital vouchers from Rs 10,000 to Rs 1 lakh. Simultaneously, it has also been allowed to be used multiple times to facilitate digital distribution of various government schemes to the beneficiaries.
Ketan Gaikwad, CEO and Managing Director, RXIC (trades platform) said, “The increased limit will help in financing MSMEs as it will make it easier to submit fewer challans in view of the revised limit of Rs 3 crore.”
Further, Rajiv Sabharwal, Managing Director and Chief Executive Officer, Tata Capital Limited said that the status quo on repo rate will accelerate the pace of growth in the economy and it is committed to support sustained growth activity.
V Swaminathan, chief executive officer of Andromeda and ApnaPaisa, said, “Keeping rates unchanged is a sign that growth is being prioritized over all other sectors. It remains to be seen what happens in the next quarter.”