Cabinet Secy to meet bankers in April for easing credit
At the Confederation of Indian Industry (CII) meet, the Cabinet Secretary KM Chandrasekhar has echoed the Reserve Bank of India (RBI) Governor, D Subbarao’s views that lack of fiscal space will make it difficult and costly for a new government to come in with another fiscal push. But the Secretary has made it clear that he is soon going to hold a meeting with bankers in early April to free up credit at affordable rates.
The Cabinet Secretary said the government lacks fiscal headroom and a huge government borrowing program will have an impact on interest rates.
According to Chandrasekhar, private banks are not doing enough to bring down interest rate.
Commenting on the same, Chandrasekhar said, “So far as the public sector banks are concerned I am going to hold a meeting with them by early April. The RBI has been continuously cutting the repo, reverse repo rates and the cash reserve ratio and thus several banks have responded and the effect will be increasingly fare.”