Expressing disappointment over RBI keeping its policy rate unchanged, the Tirupur Exporters Association (TEA) has appealed to the government to announce a three per cent interest subvention scheme for the garment sector.
“At this juncture, we strongly request the central government to announce three per cent interest subvention scheme on rupee packing credit to employment-intensive garment sector immediately with retrospective effect from April 1, 2015, for growth of exports,” TEA President A Shaktivel said in a statement.
Announcing the monetary policy that kept rates unchanged, Reserve Bank of India Governor Raghuram Rajan has said that the headline inflation is at an elevated level and banks are yet to pass on full benefits of previous rate cuts. “We were expecting some reduction in repo rate in the third bi-monthly monetary policy of 2015-16, but unfortunately it has not happened,” he said.
Rajan kept the repo rate, at which RBI lends to banks, unchanged at 7.25 per cent and the cash reserve ratio, the proportion of deposits banks have to maintain with the central bank, at 4 per cent.
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