Strongly support measures announced by RBI to revive economy: TVS Motor

TVS Motor Company on Friday lauded RBI's measures to support the economy amid countrywide lockdown.

The RBI has announced a slew of measures to boost liquidity to NBFCs and other financial institutions.

It also reduced the reverse repo by 25 basis points to 3.75 per cent.

"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," TVS Motor Company Chairman Venu Srinivasan said in a statement.

The long-term repo operation 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, he added.

"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," Srinivasan said.

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, he added.