Tirupur Exporters' Association (TEA) on Wednesday hailed the reduction of policy Repo rate by 0.35 per cent from 5.75 per cent to 5.4 per cent announced by the Reserve Bank of India in the third bi-monthly monetary policy for 2019-20.

TEA president Raja M Shanmugham in a statement said overall the banks have reduced their Weighted Average Lending Rates (WALRs) on fresh rupee loans only by 0.29 per cent during the current easing phase so far (Feb-June 2019) when RBI reduced the Repo rates by 0.75 per cent during this period.

Despite the meetings the RBI Governor had with banks and asking them to transmit the reduction, one or two banks only reduced their rates, he pointed out.

He expressed hope that by taking into account requirement of the industry, all banks will come forward to pass on the reduction of interest rate to the borrowing units, which is desperately required for the knitwear garment exporting units, particularly to MSME exporting units which are suffering further to macroeconomic changes.

Raja Shanugham thanked the Union Finance Minister and RBI Governor for this decision which will support the growth of the industries.

Published On : 07-08-2019

Source : India Today