Union Minister for Information and Broadcasting Prakash Javadekar on Saturday has hailed the Reserve Bank of India's (RBI's) decision to cut the repo rate. Addressing a press conference at the BJP state headquarters he said that the government has asked banks to transmit accruing benefits to loan borrowers.
"The RBI took an important decision and decided to reduce the repo rate for the fifth time this year. The decision will lower monthly installments to be paid. Bank loans will become cheaper and strengthen industries. The government has directed banks to pass the benefits to people. "The government has also lowered corporate taxes. We need domestic and foreign investments to boost economic growth," said Javadekar.
Speaking about the government led by Prime Minister Narendra Modi, Javadekar said that the government took 110 decisions in 15 cabinet meetings to accelerate investment inflows. "This will boost employment generation and Make in India initiative," he said.
Shedding light over the environmental effect, he said the government has simplified the process of environmental clearances. "Permissions and clearances are being given within 108 days in comparison to 640 days during the UPA regime. We do not compromise on environmental policies. We will protect the environment and develop the nation," said Javadekar.
Earlier, in a major decision on Friday, the Reserve Bank of India (RBI) has cut the repo rate by 25 basis points. In the bi-monthly policy announcement, the RBI, for the fifth consecutive time, has cut the repo rate and adjusted the reserve repo rate and bank rate. From 5.40% earlier, the RBI has decided to keep the repo rate at 5.15%. Additionally, the RBI has decided to keep the Reverse repo rate to 4.90% and bank rate at 5.40 %, accordingly.
Making the announcement on October 4, the RBI governor Shaktikanta Das has also said that the RBI will maintain an accommodative policy stance with a view to reviving growth. Bringing the repo-rate down to a six-year low, the RBI said that the reduction was necessary to revive growth. With first-quarter GDP growth plunging to 5 per cent, the RBI cut its estimate of economic growth in the current fiscal to 6.1 per cent from its earlier estimate of 6.9 per cent.
(with ANI inputs)