Published on 28/03/2020 9:15:45 AM | Source: IANS

Warring SJM backs Nirmala and RBI Guv; says, 'Well Done'

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The government saw a face of the RSS' economic wing Swadeshi Jagran Manch on Friday that it is not quite used to - throwing its support behind it.

Swadeshi Jagaran Manch, on Friday 'welcomed' the Modi government's efforts to arrest the damage done by the coronavirus. Hailing the series of relief measures by Finance Minister Nirmala Sitharaman and Reserve Bank of India's Governor Shaktikanta Das, the SJM said it will benefit the poorest of the poor, small and medium businesses. "These steps will not only provide relief, but will also ensure that the impact of this deadly virus is minimal on our economy," it said.

The economic wing of the RSS which is more often than not found itself up against the economic policies of this government, said, "The RBI not only ensured the reduction in the Repo rates by 75 bps. This will not only cut down the expenditure of the exchequer to service the debt, but will also provide the headroom for doing the expenditure to build up the economy."

Repo rates are the benchmark for the commercial banks to position their retail debt. The Reverse Repo rate cut by 90 bps, and the cash reserve ratio (CRR) is cut by another 100 bps from March 28.

CRR is the percentage of total deposits that banks are required to keep in reserves either in the vaults or with RBI so that the same can be given to the bank's customers if the need arises, whereas, reverse repo is the rate at which commercial banks in India park their excess money with RBI usually for the short term.

"All these measures could infuse liquidity to the tune of Rs 3.74 lakh crore into the system. Apart from this, the relief to existing businesses and retail debt consumers, the moratorium of three months is extended to all the interest payments against the term loans. This is a much needed relief for the middle class and small businesses. There is relaxation on the services of debt taken on housing and vehicle loans for individuals and for their cash flow & requirements of businesses," lauded the SJM.

It also welcomed the RBI decision to relax the income recognition and asset classification norms along with the rules for restructuring and provisioning of debt. It will be a great sigh of relief for the small and medium businesses that RBI and other agencies will not consider this period, while ascertaining the credit history.

Hoping that the government will be open to fresh ideas, the SJM asserted that India requires good implementations of these announcements, and the complementary efforts by the various sectoral regulators, state governments, and corporate houses. "Collectively, our aim should be that the pain caused by this Chinese virus should be minimal and the kickstart of the economy should be quicker," said Ashwani Mahajan, the face of the organization.

He added, "Globally this Chinese virus has not only infected more than five lakh humans, but has wiped out the trajectory of growth. India too is going through a tough phase, but we at SJM are satisfied with the measures taken by the government to curb the menace, help the patients and in their treatment."

SJM particularly expressed satisfaction that the Indian entrepreneurs are coming forward to not only manufacture products, but medical equipment, medicines, testing kits. "If these products match the standards set by IMCR, they should not be forced to take the clearances from US-based FDA or the EU regulators. This is a warlike situation and we must trust standards set by Indian regulators," urged the body.

"These are extraordinary situations and require extraordinary solutions. And it is time to share the burden, than to pass it on," said Mahajan, national co-convenor of the Swadeshi Jagran Manch.