RBI credit policy hailed

The AP chapter of CII and Fapcci have welcomed the new RBI governor's maiden credit policy.

"It is a carefully drafted credit policy, which focuses on the need for continuity, and has been designed to take into account the excellent performance of the economy," said K Satish Reddy, the chairman of CII-AP.

"It is heartening to note from the RBI's policy announcement that GDP growth rate is going to be 6.5-7 per cent as against the earlier projection of 6 per cent. This indicates the recovery of the economy in full measure," Fapcci said.

However, it felt that, " there is no incentive for the savings to grow as rates of interest offered by banks continue to be low and just covers the inflation rate."

CII noted that RBI's permission to banks to increase loan limit without collateral to well performing SSIs from Rs 15 lakh to Rs 25 lakh, asking banks to hedge all foreign currency loans above $10 million were some of the positive initiatives in the policy.