BJP says RBI's measures will help save livelihoods, Cong finds them 'far too little'

The RBI's measures on Friday to boost the economy hit hard by the coronavirus crisis were slammed as "far too little" by the Congress but the ruling BJP lauded them, saying they will help protect people's livelihoods by infusing liquidity and improving credit flow. 

The opposition party termed the announcements made by RBI Governor Shaktikanta Das a disappointment and sought a sector-specific package from the Modi government. 

The BJP, however, cheered these measures, with its president J P Nadda saying that the they will be a "milestone" in helping Prime Minister Narendra Modi's efforts to keep economy strong during and after the COVID-19 crisis.

Home Minister Amit Shah asserted that the steps taken by central bank to boost the economy further reinforce Modi's vision, and the prime minister is leaving no stone unturned to tackle the crisis caused by the novel coronavirus outbreak. 

Another BJP leader and Union minister Piyush Goyal said that RBI governor's announcement to do "whatever it takes" is a "massive confidence booster" for the economy.

The Reserve Bank of India on Friday cut the reverse repo rate and announced a slew of measures including re-finance window of Rs 50,000 crore and targeted long-term repo auction of similar amount to deal with the impact of the pandemic.

Das assured that the RBI will use all instruments at its disposal to deal with the challenges posed by the outbreak of the novel coronavirus, depending on the evolving situation.

In a statement, Nadda said the RBI's decision will infuse liquidity and improve credit flow, and it is in line with Modi's vision for decisions that are friendly to business as well as people.

The Union government, he added, is taking all necessary steps to help the economy cope with this crisis during the pandemic. 

"Initial Rs 50,000 crore to support small and mid NBFCs, refinance facilities of Rs 25,000 crore to NABARD to help farmers, Rs 15,000 crore to SIDBI to boost loans to start-ups and SMEs, Rs 10,000 crore to NHB to support housing for all, will prove to be significant steps," the BJP president said, citing various measures announced by the RBI governor.

"These steps will prove to be a milestone in helping Prime Minister Narendra Modi's efforts to keep the economy strong during and after the pandemic," Nadda said.

He noted that the RBI had taken several decisions last month as well in this regard. 

The central bank's measures, however, left the opposition Congress disappointed. 

Its senior spokesperson Anand Sharma dubbed them far too little to meet the industry's needs and to prevent the MSME (Micro, Small & Medium Enterprises) sector from "sliding into ICU".

He urged the prime minister to announce sector-specific package for industry. "Moratorium on instalments will not be enough, complete waiver of interest for 180 days and rescheduling of NPAs up to September 1, 2020 is the way forward," he said.

At a party briefing, Congress leader Ajay Maken expressed disappointment over the announcements made by the RBI, saying the government should take more measures to mitigate the problems of those suffering due to the lockdown over coronavirus.

"The announcements made by the RBI have no meaning. The Congress and people are disappointed with the announcements. The government should take more measures to mitigate the problems of the poor and the vulnerable," he said.

Praising the RBI's announcements, Shah said its decision to extend Rs 20,000 crore credit facility to NABARD and Rs 15,000 crore to SIDBI will greatly help the farmers, provide the much needed financial stability to MSMEs and start ups, and boost the 'Make in India' programme.

Shah said the Rs 10,000 crore to National Housing Bank (NHB) and liquidity measures for banks and non-banking financial companies (NBFCs) will help too. 

Goyal, who is railways, and commerce and industry minister, said these steps will provide liquidity for growth and help India emerge as a world leader in the post COVID-19 world. 

"The RBI governor's announcement to do 'whatever it takes' is a massive confidence booster for the economy. RBI is continuously monitoring the economy to support growth. IMF has also projected India as one of the fastest growing countries in the current financial year," he tweeted. 

BJP ally and LJP leader Ram Vilas Paswan, also a Union minister, said these decisions will hugely benefit farmers and small traders by injecting more liquidity into the market.