RBI's decision in line with PM Modi's vision, will keep economy strong: JP Nadda

BJP president JP Nadda on Friday welcomed the RBI's decision to reduce the benchmark interest rates, saying it is in line with Prime Minister Narendra Modi's vision to take steps which are both business and people friendly and will keep the economy strong during and after the COVID-19 pandemic.

Reserve Bank on Friday unexpectedly slashed benchmark interest rates to their lowest levels since 2000 and extended the moratorium on repayment of loans for three months to ramp up support for the economy which is likely to contract for the first time in over four decades.

"Today's announcements by RBI Gov is in line with the vision of our Hon PM to take steps which are both business and people friendly," Nadda said in series of tweets.

These announcements will go a long way to help Prime Minister Narendra Modi's efforts to keep the economy strong during and after the pandemic, he said.

"RBI deserves praise for shepherding the economy in the right direction despite effects of coronavirus," Nadda said.

Measures include cut in repo rate and reverse repo rate by 40 bps making cumulative rate cut to 155 bps till date and extending moratorium for another three months till August which will provide a significant boost to all loan borrowers who are unable to pay dues because of the lockdown, he said.

The steps like Rs 15,000 crore line of credit for 90 days to EXIM bank and hiking exposure limits of banks will help in dealing with the adverse effects of COVID-19 on Indian economy, the BJP chief said.

He further said some positives about Indian economy was also shared by RBI such as India's foreign reserves have increased by USD 9.2 billion during 2020-21 and inflation is expected to fall below 4 per cent by third or fourth quarter.

(Photo credit: PTI)