RBI's unwinding of liquidity measures will support growth keeping inflation under control, says PNB MD

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Representative image
Representative image

New Delhi [India], October 8 (ANI): The Reserve Bank of India's (RBI) gradual and calibrated unwinding of liquidity measures will support growth while keeping inflation under control, said Punjab National Bank MD and CEO SS Mallikarjuna Rao on Friday.

"The growth projections have been retained and the consumer price index (CPI) inflation projections have been moderated. As expected there is no change in policy rates. The gradual and calibrated unwinding of liquidity measures will support growth while keeping inflation under control," said Rao.

He emphasised that Bank lending to Non-Banking financial companies (NBFC) for priority on-lending extended for six months upto March 31, 2022 will encourage the flow of credit and support growth at the grassroots.

"Announcement of a framework of retail digital payment in offline mode across the country, increasing per transaction limit of IMPS from Rs 2 lakh to Rs 5 lakh and geo-tagging of physical payment acceptance infrastructure, will support financial inclusion and is another step in a journey towards creating digital financial infrastructure," he added.

The RBI has kept the repo rate unchanged for the eighth time straight and continued with an accommodative stance. The repo rate -- the central bank's lending rate -- remains unchanged at 4 per cent and the reverse repo rate -- borrowing rate -- at 3.35 per cent. (ANI)

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