Rungta praises RBI Governor Y V Reddy

Kolkata, Apr 18 (UNI) RBI Governor Y V Reddy deserved accolades for presenting a well-founded monetary policy, said Mr Santosh Rungta, president, Bharat Chamber of Commerce.

Reacting to RBI's Monetary Policy for the year 1006-07, he said the thrust and focus of the policy was on appropriate monetary and interest rate environment supporting growth momentum consistent with price stability, adequate availability of liquidity to match export and investment demand, timely inflation management, improvement of credit quality and financial market conditions.

It was well designed to make the Indian Banking and financial system more efficient, Mr Rungta in a statement said.

He said, " The move to constitute a Working Group to suggest measures for assisting distressed farmers with regard to financial counseling services and introduction of a Specific Credit Guarantee Scheme is welcome. " " The decision to make it mandatory for Banks to display and update in their offices/branches the details of variouss service charges in a format to be approved by the RBI is also laudable as it will take care of the problem arising out of the unreasonable and nontransparent service charges being levied by Banks, " Mr Rungta said but regretted that the policy had not taken any measure to reduce the cost of fund for trade and industry, which he felt was the need of the hour.

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