Habil Khorakiwala
Chairman,
Wockhardt Ltd
While presenting this busy season credit policy, Reserve Bank governor Bimal Jalan was blessed with a positive economic scenario with inflation well within control, a booming forex reserve, easy liquidity, poor credit off-take in spite of lower interest rates and continuing slow down in various global economies.
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Looking at these factors, the governor should have taken a bolder approach to kick-start the economy by reducing the bank rate by a minimum of 1 per cent keeping in view the lower interest regime in the global market.
It is good to see that RBI has now started looking into the aspects of various banking reforms which was promised by the governor during the earlier policy of April 2002, which will usher in new and significant products for corporates to meet the challenges of the global economy.
It is also heartening to know that a Working Group has been formed to look into the area of rupee derivatives. This will also lead to a more stabilised borrowings market with the benefit accruing both to the banks and the corporates.
The move to further simplify the export credit loan and also the flexibility to repay the same are also welcome.
However, all in all, a disappointing policy, wherein the governor missed the golden opportunity to use all the various positive economic factors to accelerate economic growth.