RBI measures will helpprotect livelihoods, be milestone in keeping economy strong: Nadda

The BJP on Friday lauded the measures announced by the RBI, with party president J P Nadda saying they will help protect people's livelihoods and will be a "milestone" in helping Prime Minister Narendra Modi's efforts to keep economy strong during and after the COVID-19 crisis.

Another party leader and Union minister Piyush Goyal asserted that RBI Governor Shaktikanta Das' announcement to do whatever it takes is a "massive confidence booster" for the economy.

The Reserve Bank of India on Friday cut the reverse repo rate and announced a slew of measures including re-finance window of Rs 50,000 crore and targeted long-term repo auction of similar amount to deal with the impact of the COVID-19 pandemic.

Das assured that the RBI will use all instruments at its disposal to deal with the challenges posed by the outbreak of the novel coronavirus, depending on the evolving situation.

In a statement, Nadda said the RBI decision will infuse liquidity and improve credit flow, and it is in line with Modi's vision for decisions that are friendly to businesses as well as people.

The Union government, he added, is taking all necessary steps to help the economy cope with this crisis during the pandemic, Nadda said.

"Initial Rs 50,000 crore to support small and mid NBFCs, refinance facilities of Rs 25,000 crore to NABARD to help farmers, Rs 15,000 crore to SIDBI to boost loans to start-ups and SMEs, Rs 10,000 crore to NHB to support housing for all, will prove to be significant steps," the BJP president said, citing various measures announced by the RBI governor.

"These steps will prove to be a milestone in helping Prime Minister Narendra Modi's efforts to keep economy strong during and after the pandemic," Nadda said.

He noted that the RBI had taken several decisions last month as well in this regard.

Praising the RBI's decisions, Goyal, who is railways, and commerce and industry minister, said these steps will provide liquidity for growth and help India emerge as a world leader in the post COVID-19 world.

"The RBI governor's announcement to do 'whatever it takes' is a massive confidence booster for the economy. RBI is continuously monitoring the economy to support growth. IMF has also projected India as one of the fastest growing countries in the current financial year," he tweeted.