Cong terms RBI's measures 'far toolittle', disappointing

The Congress on Friday termed the measures announced by the RBI "far too little", saying it was disappointed with the action and urged Prime Minister Narendra Modi to announce sector specific packages for the industry.

Senior party spokesperson Anand Sharma said the measures announced by the RBI are "far too little to meet the needs of the Indian industry and prevent the MSMEs from sliding into ICU".

"Urging the prime minister once again to announce sector specific packages to ensure companies remain afloat," he said on Twitter.

He said the government guaranteed bank finance to MSMEs at zero per cent interest, interest subvention and affordable credit for the industry. "Moratorium on instalments will not be enough, complete waiver of interest for 180 days and rescheduling of NPAs up to September 1, 2020 is the way forward," Sharma said.

Congress leader Ajay Maken expressed disappointment over the announcements made by the RBI, saying the government should take more measures to mitigate the problems of those suffering due to the lockdown over coronavirus.

"The announcements made by the RBI have no meaning. The Congress and people are disappointed with the announcements. The government should take more measures to mitigate the problems of the poor and the vulnerable," he said at a press conference through video.

Reserve Bank of India (RBI) Governor Shaktikanta Das announced a string of relief measures for the stressed banking and financial sector, cutting the reverse repo rate by 25 basis points (bps) to 3.75 per cent but kept the repo rate unchanged.

The measures taken will provide an additional Rs 50,000 crore through targeted long-term repo operation (TLTRO) to be undertaken in tranches.