BNCCI compliments RBI's mid term review

Kolkata, Oct 31 (UNI) Bengal National Chamber of Commerce and Industry (BNCCI) has complimented the RBI's Mid Term Monetary and Credit Policy for ensuring a growth oriented interest rate environment as also for providing appropriate liquidity to meet the genuine credit needs and support export and investment demand in the economy.

Hailing the strong and robust macro economic and GDP growth rate as envisaged by the Mid Term Review and announced by RBI Governor Y V Reddy today, BNCCI President Shanta Ghosh here complimented the Bank Rate and Cash Reserve Ratio which had been kept unchanged at six per cent and five per cent respectively. However, the Industry expected a further cut in bank rate at par with the international standards, she pointed out.

Mrs Ghosh, however, expressed concern over facilitation of additional External Commercial Borrowing (ECB)and felt that this might have adverse effects on domestic borrowing by the Indian bankers.

The encouragement given towards Foreign Institutional Investment (FII) by raising the limit for Government securities from two Billion US dollars to 3.2 billion US dollars and the limit for mutual funds from two billion to three billion US dollars might turn out to be risky, the BNCCI President felt and suggested that more incentives should have been given for Foreign Direct Investment(FDI).

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