The Indian Industry body ASSOCHAM has urged the Reserve Bank of India (RBI) to cut CRR (cash reserve ratio) by another 0.75% points and repo rate, the level at which banks borrow from the apex bank, by 0.50%.
CRR is the amount of funds banks have to necessarily park with the RBI.
"The economy is going through a very difficult patch and business confidence has plummeted. New investments have slowed down," Mr. Rajkumar Dhoot, President, ASSOCHAM said, during his interaction with RBI Governor D Subbarao ahead of the central bank's monetary policy review scheduled on April 17.
Mr. Dhoot also said, ''The the industry particularly manufacturing sector has been affected due to high input & capital costs. The RBI’s monetary tightening has added to the low business confidence and affected financial bottomlines, leading to deceleration in investments"
On March 10, 2012 the RBI had cut CRR from 5.5% to 4.75%t. "There is a need to cut it further by 0.75%".
CRR is the amount of funds banks have to necessarily park with the RBI.
"The economy is going through a very difficult patch and business confidence has plummeted. New investments have slowed down," Mr. Rajkumar Dhoot, President, ASSOCHAM said, during his interaction with RBI Governor D Subbarao ahead of the central bank's monetary policy review scheduled on April 17.
Mr. Dhoot also said, ''The the industry particularly manufacturing sector has been affected due to high input & capital costs. The RBI’s monetary tightening has added to the low business confidence and affected financial bottomlines, leading to deceleration in investments"
On March 10, 2012 the RBI had cut CRR from 5.5% to 4.75%t. "There is a need to cut it further by 0.75%".
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