“MPC announcements this morning struck an ideal balance between prudence in monetary policy actions and fostering improved credit conditions in the real economy. The decision to maintain the status quo in policy rates was anticipated. However, the real significance lies in the various measures introduced to enhance credit flow. Initiatives such as the glide path towards the ECL framework, broadening the scope for capital market lending, and lifting restrictions on collection accounts are all well-timed and will support the financial system in achieving aspirational growth levels. The RBI’s upgrade of growth expectations for the current fiscal year serves as a strong reassurance of robust domestic momentum, even in light of external challenges. The Governor’s emphasis on aligning all domestic policies—fiscal, monetary, and regulatory—toward the Viksit Bharat goals has effectively shifted the focus from short-term external issues to domestic resilience and medium-term economic potential.” – Mr. Sudipta Roy, Managing Director & CEO, L&T Finance Ltd.
RBI Balances Prudence and Growth: New Measures Boost Credit Flow and Economic Resilience
