RBI announces monetary measures:BNCCI

By Staff
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Google Oneindia News

Kolkata, Mar 31 (UNI) Bengal National Chamber of Commerce and Industry president Shanta Ghosh today said RBI has raised the cash reserve ratio (CRR) by 50 basis points to 6.5 per cent from April 28 and the repo rate 25 per cent to 7.75 per cent with immediate effect.

The higher CRR will suck out Rs 15,500 crore from the banking system, adding to the Rs 27,500 crore drained through two previous increases.

Ms Ghosh in a statment said although the continuous upward adjustments of CRR would help in containing inflation, this would be at the cost of industry, business and commerce, as they would have access to less and less credit.

Besides, the rising cost for credit should also be tackled with caution as spiralling costs would make the industries non-competitive, both locally and globally.

The president said inflation should be controlled keeping the growth spurt in mind. The situation could have been handled by bringing cost controlling measures, including controlling the price of petrol, diesel and other fuel, she added.

UNI

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